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economy. -- New Keynesian DSGE models ; macroeconomic stability ; social networks ; Information dissemination ; herding effect …
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When banks choose similar investment strategies, the financial system becomes vulnerable to common shocks. Banks decide about their investment strategy ex-ante based on a private belief about the state of the world and a social belief formed from observing the actions of peers. When the social...
Persistent link: https://www.econbiz.de/10013051175
When banks choose similar investment strategies, the financial system becomes vulnerable to common shocks. Banks decide about their investment strategy ex-ante based on a private belief about the state of the world and a social belief formed from observing the actions of peers. When the social...
Persistent link: https://www.econbiz.de/10012988737
certain branching process. We use the theory of Galton-Watson branching process and calculate the probability of the tree …
Persistent link: https://www.econbiz.de/10012929053
In this paper, we estimate an agent-based model (ABM) to investigate herding behaviors in the formation of investor … cryptocurrencies. Our empirical results suggest a strong impact of herding behavior on the formation of sentiment toward highly … instead explained by the strong influence of financial returns and investors' attention. In particular, we find that herding …
Persistent link: https://www.econbiz.de/10013323387
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We study social learning in a social network setting where agents receive independent noisy signals about the truth. Agents naïvely update beliefs by repeatedly taking weighted averages of neighbors' opinions. The weights are fixed in the sense of representing average frequency and intensity of...
Persistent link: https://www.econbiz.de/10011801379
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