Bubbles, crashes and risk

C-Tier
Journal: Economics Letters
Year: 2013
Volume: 120
Issue: 2
Pages: 254-258

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A restricted-perceptions equilibrium exists in which risk-averse agents believe stock prices follow a random walk with a conditional variance that is self-fulfilling. When agents estimate risk, bubbles and crashes arise. These effects are stronger when agents allow for ARCH in excess returns.

Technical Details

RePEc Handle
repec:eee:ecolet:v:120:y:2013:i:2:p:254-258
Journal Field
General
Author Count
2
Added to Database
2026-01-24