Abstract: Behavioral Finance, pp. 167-185 (2019) No AccessChapter 6: A Survey of Behavioral Macro-FinanceNa Young ParkNa Young ParkIncheon National University, Incheon, South Koreahttps://doi.org/10.1142/9789813279469_0006Cited by:0 PreviousNext AboutSectionsPDF/EPUB ToolsAdd to favoritesDownload CitationsTrack CitationsRecommend to Library ShareShare onFacebookTwitterLinked InRedditEmail Abstract: A summary of the literature in Behavioral Macro-Finance is presented hereby. In the literature about behavioral finance, we encounter the distinction between behavioral macro-finance and behavioral microfinance. Behavioral macro-finance is defined as the field that "detects and describes anomalies in the efficient market hypothesis that behavioral models may explain" (Pompian, 2006). Behavioral micro-finance refers to the field that "examines behaviors or biases of individual investors that distinguish them from the rational actors envisioned in classical economic theory" (Pompian, 2006). This chapter describes the rise of behavioral macro-finance and categorizes the literature into six subtopics: (1) Bubbles, the "Irrational Exuberance," (2) the Equity Premium Puzzle, (3) the Volatility Puzzle, (4) Violation of the Law of One Price, Limits to Arbitrage, and (5) "Micro-efficient" but "Macro-inefficient." FiguresReferencesRelatedDetails Behavioral FinanceMetrics History PDF download
Publication Year: 2019
Publication Date: 2019-04-23
Language: en
Type: book-chapter
Indexed In: ['crossref']
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot