This paper presents a Heterogeneous Agent Model of a financial market with chartist and fundamentalist traders that exhibit bounded rationality and short-term thinking to explain the effect of under and overreaction to news. The existence of the Market Maker's finite price adjustment speed and...

We develop an agent-based model in which heterogenous and boundedly rational agents interact by trading a risky asset at an endogenously set price. Agents are endowed with balance sheets comprising the risky asset as well as cash on the asset side and equity capital as well as debt on the...

We apply the Atkinson (1970) inequality index to time series of asset returns to offer a novel measure of financial risk consistent with expected-utility theory. This measure is converted to a certainty-equivalent return serving as a performance measure. We extend the Atkinson index to HARA...

This paper discusses the role of housing for the structural transformation of an economy away from the agricultural to the manufacturing sector in a general equilibrium model. The model explains evidence from China (1978-2015). Due to the urban-rural wage gap there is domestic migration from the...

The financial crisis has led to a loss of trust towards corporate governance quality and the balance of the European financial market. This became also apparent for Germany. In Germany financial companies' compliance with the German Corporate Governance Code (GCGC) represents a basic standard...

This paper presents tractable two parameter stochastic processes of the drift-diffusion class in order to model economic processes with a focus on income. Starting from the resulting closed-form, cross-sectional distributions, easy-to-interpret expressions for mobility and inequality (including...