Economists Do It With Models

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Entries Tagged as 'Finance'

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The Disposition Effect, Now With More Empirical Evidence…

August 12th, 2016 · 1 Comment
Behavioral Econ · Finance · Videos

In case you’ve forgotten, the disposition effect is the bias toward selling winning stocks (or other investments I guess) and away from selling losing stocks. In the video below, I start covering one of the seminal empirical papers on the disposition effect and can’t resist fangirling out for a second in the process. You can […]

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Tags: Behavioral Econ · Finance · Videos

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More On Efficient Markets, Now With More Stock-Picking Cats…

August 4th, 2016 · 2 Comments
Behavioral Econ · Finance · Videos

My students were still convinced that stock returns are predictable, so I had to stop and give them some evidence: Hopefully the stock-picking cat was more persuasive (purr-suasive?) than I am.

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Tags: Behavioral Econ · Finance · Videos

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Disposition Effect Or Inefficient Markets?

July 27th, 2016 · No Comments
Behavioral Econ · Finance · Videos

So I gave my students the following thought experiment: Say you owned a portfolio of stocks. Over time, some of those stocks have gained value since you bought them and others have lost value (let’s call them winners and losers, respectively). When deciding which stocks to sell and which to hold, should you: Sell the […]

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Tags: Behavioral Econ · Finance · Videos

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November 16th, 2015 · No Comments
Finance · Tumblr

http://economistsdoitwithmodels.tumblr.com/post/133363213325/apparently-short-selling-is-so-easy-even-little

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Tags: Finance · Tumblr

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When The Efficient-Markets Hypothesis Gets Taken Too Far, With Bonus Zoo Footage…

June 8th, 2014 · 8 Comments
Finance

It’s no secret that many economists believe in the efficiency of markets- in fact, there’s a fairly well-known joke that goes something like the following: Normal person: Hey look, somebody dropped $20 on the sidewalk. Economist: Nonsense- that can’t be a real $20 bill, since, if it was, somebody would have picked it up already. […]

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Tags: Finance

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The New (And Improved) Alan Greenspan Does The Daily Show…

October 24th, 2013 · 3 Comments
Behavioral Econ · Books · Finance · Markets · Policy

Oh man, this is great…it’s like watching everybody’s grandfather talk about bank regulation, AND Greenspan is basically saying that behavioral economists had it right all along: (Sidenote: the closed captions are really helpful if you are somewhere where audio is frowned upon.) Oh good, we’ve gotten to a point in the world where the guy […]

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Tags: Behavioral Econ · Books · Finance · Markets · Policy