Instability of Financial Markets and Preference Heterogeneity

dc.contributor.authorFranke, Günter
dc.contributor.authorLüders, Erikdeu
dc.date.accessioned2011-11-18T09:10:52Zdeu
dc.date.available2011-11-18T09:10:52Zdeu
dc.date.issued2010
dc.description.abstractThis paper presents a simple rational expectations model of intertemporal asset pricing relating instability of stock return characteristics to heterogeneity in investor preferences. Heterogeneity is likely to generate declining aggregate relative risk aversion. This leads to variability in expected asset returns, volatility, and autocorrelation. The stronger this variability is, the more heterogeneous preferences are, implying more instability of financial markets. Stock market crashes may be observed if relative risk aversion differs strongly across investors.eng
dc.description.versionpublished
dc.identifier.citationPubl. in: Advances in Decision Sciences ; (2010). - Article ID 791025deu
dc.identifier.doi10.1155/2010/791025deu
dc.identifier.urihttp://kops.uni-konstanz.de/handle/123456789/14969
dc.language.isoengdeu
dc.legacy.dateIssued2011-11-18deu
dc.rightsterms-of-usedeu
dc.rights.urihttps://rightsstatements.org/page/InC/1.0/deu
dc.subjectFinancial instabilitydeu
dc.subjectaggregate relative risk aversiondeu
dc.subjectequilibrium asset price processesdeu
dc.subjectvariability in expected stock returns and volatilitydeu
dc.subjectstock market crashesdeu
dc.subject.ddc330deu
dc.titleInstability of Financial Markets and Preference Heterogeneityeng
dc.typeJOURNAL_ARTICLEdeu
dspace.entity.typePublication
kops.citation.bibtex
@article{Franke2010Insta-14969,
  year={2010},
  doi={10.1155/2010/791025},
  title={Instability of Financial Markets and Preference Heterogeneity},
  volume={2010},
  issn={2090-3359},
  journal={Advances in Decision Sciences},
  pages={1--27},
  author={Franke, Günter and Lüders, Erik}
}
kops.citation.iso690FRANKE, Günter, Erik LÜDERS, 2010. Instability of Financial Markets and Preference Heterogeneity. In: Advances in Decision Sciences. 2010, 2010, pp. 1-27. ISSN 2090-3359. Available under: doi: 10.1155/2010/791025deu
kops.citation.iso690FRANKE, Günter, Erik LÜDERS, 2010. Instability of Financial Markets and Preference Heterogeneity. In: Advances in Decision Sciences. 2010, 2010, pp. 1-27. ISSN 2090-3359. Available under: doi: 10.1155/2010/791025eng
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kops.sourcefieldAdvances in Decision Sciences. 2010, <b>2010</b>, pp. 1-27. ISSN 2090-3359. Available under: doi: 10.1155/2010/791025deu
kops.sourcefield.plainAdvances in Decision Sciences. 2010, 2010, pp. 1-27. ISSN 2090-3359. Available under: doi: 10.1155/2010/791025deu
kops.sourcefield.plainAdvances in Decision Sciences. 2010, 2010, pp. 1-27. ISSN 2090-3359. Available under: doi: 10.1155/2010/791025eng
kops.submitter.emailguenter.franke@uni-konstanz.dedeu
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