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theories. These markets anomalies have spawned a new approach to finance, one which as editor Richard Thaler puts it … Behavioral Finance collects together twenty-one recent articles that illustrate the power of this approach. These papers … demonstrate how specific departures from fully rational decision making by individual market agents can provide explanations of …
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We study how investor sentiment affects stock prices around the world. Relying on households' Google search behavior, we construct a weekly measure of sentiment for 38 countries during the 2004–2014 period. We validate the sentiment index in tests using sports outcomes and show that the...
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