Financial crises: An approach from expectations at asset markets

This paper describes the different mechanisms applied by agents when forming their expectations along asset markets literature. Rational, extrapolative and adaptative expectations are being reviewed, as well as some other more alternative approaches such as natural expectations. The goal leading us...

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Autor principal: Santocono, Sebastián
Formato: Artículo publishedVersion Text Texto
Lenguaje:Español
Publicado: FACULTAD DE CIENCIAS ECONÓMICAS - UNIVERSIDAD DE BUENOS AIRES 2019
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Acceso en línea:https://ojs.economicas.uba.ar/REPBA/article/view/1574
https://repositoriouba.sisbi.uba.ar/gsdl/cgi-bin/library.cgi?a=d&c=ecopol&d=1574_oai
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Sumario:This paper describes the different mechanisms applied by agents when forming their expectations along asset markets literature. Rational, extrapolative and adaptative expectations are being reviewed, as well as some other more alternative approaches such as natural expectations. The goal leading us through their examination is to find which one contributes the most at making models able to replicate empirical results. Particularly, which kind of expectations allows a better replication of asset bubbles formation, persistence and final collapse. In this terms, the best fit is given by extrapolative expectations, which are also those describing better the way agents behave at real asset markets.