Multiple equilibria in a simple asset pricing model
β Scribed by Todd B. Walker; Charles H. Whiteman
- Book ID
- 116421712
- Publisher
- Elsevier Science
- Year
- 2007
- Tongue
- English
- Weight
- 147 KB
- Volume
- 97
- Category
- Article
- ISSN
- 0165-1765
No coin nor oath required. For personal study only.
π SIMILAR VOLUMES
In this paper we study the adaptive rational equilibrium dynamics in a simple asset pricing model introduced by Brock and Hommes (System Dynamics in Economic and Financial Models, Wiley, Chichester, 1997, pp. 3}44; Journal of Economic Dynamics and Control, 22, 1998, 1235}1274). Traders have heteroge
This paper investigates the dynamics in a simple present discounted value asset pricing model with heterogeneous beliefs. Agents choose from a finite set of predictors of future prices of a risky asset and revise their 'beliefs' in each period in a boundedly rational way, according to a 'fitness mea