Loading...
Please wait, while we are loading the content...
Similar Documents
Heterogeneous Beliefs , Speculation and Trading in Financial Markets
| Content Provider | Semantic Scholar |
|---|---|
| Author | Scheinkman, José A. Xiong, Wei |
| Copyright Year | 2004 |
| Abstract | We survey recent developments in finance that analyze how heterogeneous beliefs among investors generate speculation and trading. We describe the joint effects of heterogeneous beliefs and short-sales constraints on asset prices, using both static and dynamic models, discuss the no-trade theorem in the rational expectations framework, and present investor overconfidence as a potential source of heterogeneous beliefs. We review recent results of Scheinkman and Xiong (2003) modeling the resale option that is embedded in share prices in the presence of short-sale constraints and heterogeneous beliefs, highlighting the implied correlation between stock prices and trading volume. Finally, we discuss the survival of investors with incorrect beliefs. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://www.princeton.edu/~joses/wp/survey.pdf |
| Language | English |
| Access Restriction | Open |
| Subject Keyword | Embedded system Embedding Genetic Heterogeneity |
| Content Type | Text |
| Resource Type | Article |
