Giovanni Piersanti
- Published in print:
- 2012
- Published Online:
- September 2012
- ISBN:
- 9780199653126
- eISBN:
- 9780191741210
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199653126.003.0004
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This chapter discusses the basic analytical framework of “second-generation” models of currency crises and their extensions to deal with new characteristics of international financial crises such as ...
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This chapter discusses the basic analytical framework of “second-generation” models of currency crises and their extensions to deal with new characteristics of international financial crises such as the connections between financial fragility and currency instability, government's reputation and credibility, asymmetric information and herding behavior, contagion across markets and countries, financial intermediation and liquidity crises, credit constraints and balance-sheet effects, strategic interaction among agents and equilibrium selection. The most important implication to emerge from this approach is that the run on central bank foreign reserves does not require policy inconsistencies and an adverse trend in the fundamentals before the crisis. The attack itself may induce an optimizing regime-switching choice that makes the crisis self-validating. Thus, the exact timing of a speculative attack turns to be indeterminate and arduous to forecast.Less
This chapter discusses the basic analytical framework of “second-generation” models of currency crises and their extensions to deal with new characteristics of international financial crises such as the connections between financial fragility and currency instability, government's reputation and credibility, asymmetric information and herding behavior, contagion across markets and countries, financial intermediation and liquidity crises, credit constraints and balance-sheet effects, strategic interaction among agents and equilibrium selection. The most important implication to emerge from this approach is that the run on central bank foreign reserves does not require policy inconsistencies and an adverse trend in the fundamentals before the crisis. The attack itself may induce an optimizing regime-switching choice that makes the crisis self-validating. Thus, the exact timing of a speculative attack turns to be indeterminate and arduous to forecast.
Bárbara J. Robles
- Published in print:
- 2013
- Published Online:
- May 2013
- ISBN:
- 9780199755950
- eISBN:
- 9780199332526
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199755950.003.0075
- Subject:
- Social Work, Communities and Organizations
This chapter employs data that documents the financial behaviors of Southwest Border working families over a five-year period. Paper surveys administered at community-based organizations offering ...
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This chapter employs data that documents the financial behaviors of Southwest Border working families over a five-year period. Paper surveys administered at community-based organizations offering free tax-preparation services in Texas, New Mexico, Arizona, and California generated over 30,000 respondents. The survey findings suggest Border families’ financial behaviors provide provocative empirical evidence of culturally defined economic resiliencies and financial capabilities.Less
This chapter employs data that documents the financial behaviors of Southwest Border working families over a five-year period. Paper surveys administered at community-based organizations offering free tax-preparation services in Texas, New Mexico, Arizona, and California generated over 30,000 respondents. The survey findings suggest Border families’ financial behaviors provide provocative empirical evidence of culturally defined economic resiliencies and financial capabilities.
H. Kent Baker, Greg Filbeck, and Victor Ricciardi
- Published in print:
- 2017
- Published Online:
- May 2017
- ISBN:
- 9780190269999
- eISBN:
- 9780190270025
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780190269999.003.0001
- Subject:
- Economics and Finance, Financial Economics
Financial behavior is a complex subject because how people should behave according to traditional finance often differs from how they actually behave. Although traditional and behavioral finance play ...
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Financial behavior is a complex subject because how people should behave according to traditional finance often differs from how they actually behave. Although traditional and behavioral finance play important roles in understanding investor and market behavior, this book focuses on behavioral finance. Behavioral finance uses insights largely from finance, psychology, and other disciplines to explain how people act and how their behavior affects markets and other financial applications. This chapter provides an overview of behavioral finance, followed by a brief explanation of the book’s purpose, distinguishing features, and intended audience. The chapter outlines the book’s structure of: (1) financial behavior and psychology, (2) financial behavior of major players, (3) financial and investor psychology of specific players, (4) psychology of financial services, (5) behavioral aspects of investment products and markets, (6) market efficiency issues, and (7) application and future of behavioral finance.Less
Financial behavior is a complex subject because how people should behave according to traditional finance often differs from how they actually behave. Although traditional and behavioral finance play important roles in understanding investor and market behavior, this book focuses on behavioral finance. Behavioral finance uses insights largely from finance, psychology, and other disciplines to explain how people act and how their behavior affects markets and other financial applications. This chapter provides an overview of behavioral finance, followed by a brief explanation of the book’s purpose, distinguishing features, and intended audience. The chapter outlines the book’s structure of: (1) financial behavior and psychology, (2) financial behavior of major players, (3) financial and investor psychology of specific players, (4) psychology of financial services, (5) behavioral aspects of investment products and markets, (6) market efficiency issues, and (7) application and future of behavioral finance.
Stuart Vyse
- Published in print:
- 2008
- Published Online:
- March 2012
- ISBN:
- 9780195306996
- eISBN:
- 9780199847099
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195306996.001.0001
- Subject:
- Psychology, Social Psychology
This book offers a psychological perspective on the financial behavior of the many Americans today who find they cannot make ends meet, illuminating the causes of wildly self-destructive spending ...
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This book offers a psychological perspective on the financial behavior of the many Americans today who find they cannot make ends meet, illuminating the causes of wildly self-destructive spending habits. Bringing together fascinating studies of consumer behavior, the book argues that the mountain of debt burying so many of us is the inevitable by-product of America's turbo-charged economy and, in particular, of social and technological trends that undermine self-control. The book illuminates everything from the rise of the credit card, to the increase in state lotteries and casino gambling, to the expansion of new shopping opportunities provided by toll-free numbers, home shopping networks, big-box stores, and the Internet, revealing how vast changes in American society over the last thirty years have greatly complicated man's relationship with money.Less
This book offers a psychological perspective on the financial behavior of the many Americans today who find they cannot make ends meet, illuminating the causes of wildly self-destructive spending habits. Bringing together fascinating studies of consumer behavior, the book argues that the mountain of debt burying so many of us is the inevitable by-product of America's turbo-charged economy and, in particular, of social and technological trends that undermine self-control. The book illuminates everything from the rise of the credit card, to the increase in state lotteries and casino gambling, to the expansion of new shopping opportunities provided by toll-free numbers, home shopping networks, big-box stores, and the Internet, revealing how vast changes in American society over the last thirty years have greatly complicated man's relationship with money.
Eric Barthalon
- Published in print:
- 2014
- Published Online:
- November 2015
- ISBN:
- 9780231166287
- eISBN:
- 9780231538305
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231166287.003.0009
- Subject:
- Economics and Finance, Behavioural Economics
This chapter describes a few simple models that explain financial behavior by the perceived returns on financial assets and thereby provide evidence of positive feedback from past returns to the ...
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This chapter describes a few simple models that explain financial behavior by the perceived returns on financial assets and thereby provide evidence of positive feedback from past returns to the demand for risky assets. These models bring to light nonlinear relationships between perceived returns and observed investors' behavior. The chapter presents a few examples that are particularly relevant with respect to the dynamics of financial instability. The discussion begins with some empirical evidence of a positive feedback from past equity returns into the demand for equities. As this demand exhibits a nonlinear pattern that is similar to the one found by Maurice Allais in his HRL formulation of the supply of money, the findings are compared with those of Allais. The chapter concludes with a discussion of the policy implications of positive feedback.Less
This chapter describes a few simple models that explain financial behavior by the perceived returns on financial assets and thereby provide evidence of positive feedback from past returns to the demand for risky assets. These models bring to light nonlinear relationships between perceived returns and observed investors' behavior. The chapter presents a few examples that are particularly relevant with respect to the dynamics of financial instability. The discussion begins with some empirical evidence of a positive feedback from past equity returns into the demand for equities. As this demand exhibits a nonlinear pattern that is similar to the one found by Maurice Allais in his HRL formulation of the supply of money, the findings are compared with those of Allais. The chapter concludes with a discussion of the policy implications of positive feedback.
H. Kent Baker, Greg Filbeck, and Victor Ricciardi (eds)
- Published in print:
- 2017
- Published Online:
- May 2017
- ISBN:
- 9780190269999
- eISBN:
- 9780190270025
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780190269999.001.0001
- Subject:
- Economics and Finance, Financial Economics
This book provides a synthesis of the theoretical and empirical literature on the financial behavior of major stakeholders, financial services, investment products, and financial markets. It offers a ...
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This book provides a synthesis of the theoretical and empirical literature on the financial behavior of major stakeholders, financial services, investment products, and financial markets. It offers a different way of looking at financial and emotional well-being and the processing of beliefs, emotions, and behaviors related to money than provided by traditional academic finance. The book provides important insights into how cognitive and emotional biases influence various financial decision makers, services, products, and markets. Because noted scholars and practitioners write on their areas of expertise, readers can gain an in-depth understanding of multiple topic from experts around the world. In today’s financial setting, the discipline of behavioral finance continues to evolve at a rapid pace. This book familiarizes readers with not only the core topics and issues but also the latest trends, cutting-edge research developments, and real-world situations. Additionally, discussion of cognitive and emotional issues is supported with research in the field. Overall, the book covers a critical topic, from the theoretical to the practical, while offering a useful balance of detailed and user-friendly discussions. Those interested in a broad survey will benefit, as will those seeking in-depth coverage of biases and other aspect of behavioral finance. As the seventh book in the Financial Markets and Investment Series, Financial Behavior: Players, Services, Products, and Markets offers a fresh look at this fascinating area of behavioral finance.Less
This book provides a synthesis of the theoretical and empirical literature on the financial behavior of major stakeholders, financial services, investment products, and financial markets. It offers a different way of looking at financial and emotional well-being and the processing of beliefs, emotions, and behaviors related to money than provided by traditional academic finance. The book provides important insights into how cognitive and emotional biases influence various financial decision makers, services, products, and markets. Because noted scholars and practitioners write on their areas of expertise, readers can gain an in-depth understanding of multiple topic from experts around the world. In today’s financial setting, the discipline of behavioral finance continues to evolve at a rapid pace. This book familiarizes readers with not only the core topics and issues but also the latest trends, cutting-edge research developments, and real-world situations. Additionally, discussion of cognitive and emotional issues is supported with research in the field. Overall, the book covers a critical topic, from the theoretical to the practical, while offering a useful balance of detailed and user-friendly discussions. Those interested in a broad survey will benefit, as will those seeking in-depth coverage of biases and other aspect of behavioral finance. As the seventh book in the Financial Markets and Investment Series, Financial Behavior: Players, Services, Products, and Markets offers a fresh look at this fascinating area of behavioral finance.
Dilwyn Porter
- Published in print:
- 2017
- Published Online:
- September 2017
- ISBN:
- 9780719090356
- eISBN:
- 9781526124081
- Item type:
- chapter
- Publisher:
- Manchester University Press
- DOI:
- 10.7228/manchester/9780719090356.003.0010
- Subject:
- Sociology, Social Movements and Social Change
In the 1960s the Daily Mirror ran a weekly feature offering financial and investment advice about stocks and shares and it dealt with thousands of letters a year about financial matters from readers ...
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In the 1960s the Daily Mirror ran a weekly feature offering financial and investment advice about stocks and shares and it dealt with thousands of letters a year about financial matters from readers who found its advice more accessible and less intimidating than speaking to financial professionals. The social optimism of the sixties dissipated in the 1970s, however, as the economic situation deteriorated and the Daily Mirror’s financial advice had to adapt to a climate in which its own circulation was declining and as its core readership started to age the column became more conservative, dealing with queries from older readers and worries about unemployment, and focusing more on ‘mitigating’ the effects of inflation and redundancy payments. Porter argues that the Daily Mirror had, in fact, misinterpreted its readers’ interest in ‘popular capitalism’ during full employment and rising living standards in the 1960s, when its advocacy of financial investment reflected contemporary beliefs that the values and aspirations of the working-class were changing, with greater opportunities to borrow, save and spend. As he points out, its financial journalists were forced over time to adapt to more pragmatic queries about family budgeting and personal savings rather than focusing on larger investments.Less
In the 1960s the Daily Mirror ran a weekly feature offering financial and investment advice about stocks and shares and it dealt with thousands of letters a year about financial matters from readers who found its advice more accessible and less intimidating than speaking to financial professionals. The social optimism of the sixties dissipated in the 1970s, however, as the economic situation deteriorated and the Daily Mirror’s financial advice had to adapt to a climate in which its own circulation was declining and as its core readership started to age the column became more conservative, dealing with queries from older readers and worries about unemployment, and focusing more on ‘mitigating’ the effects of inflation and redundancy payments. Porter argues that the Daily Mirror had, in fact, misinterpreted its readers’ interest in ‘popular capitalism’ during full employment and rising living standards in the 1960s, when its advocacy of financial investment reflected contemporary beliefs that the values and aspirations of the working-class were changing, with greater opportunities to borrow, save and spend. As he points out, its financial journalists were forced over time to adapt to more pragmatic queries about family budgeting and personal savings rather than focusing on larger investments.
