This paper analyzes the effects of buy and hold investors on security price dynamics in a pure-exchange, continuous-time model. Empirical studies suggest that many defined contribution plan participants follow buy and hold strategies by rarely changing asset and flow allocations due to...

The price of oil has risen by about 60% since mid-2004 and by more than 40% since the beginning of 2005. Though the U.S. economy has apparently absorbed this supply shock well so far, the path of future oil prices remains a concern for monetary policymakers. Higher oil prices can damp demand, as...