Behavioral Finance: Household Investment and Borrowing Decisions
نویسندگان
چکیده
منابع مشابه
Behavioral Finance: Capital Budgeting and Other Investment Decisions
This chapter surveys the literature on the effects of behavioral biases on capital budgeting. A large body of the psychology literature finds that people tend to be overconfident and overly optimistic. Because of self-selection, firm managers tend to be even more affected by these biases than the general population. Indeed, the literature finds that biased managers overinvest their firm’s free ...
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A competitive firm which chooses the timing of investment and optimal volume of debt is considered. The price of the firm’s output follows the geometric Brownian motion or more general jump-diffusion processes, and the firm takes an arbitrage free borrowing rate as given. The optimal timing of investment and volume of debt is computed, and it is shown that if the borrowing rate is close to the ...
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Numerous behavioral factors have been identified as having an impact on household stockholding decisions. Given there is both theoretical and empirical evidence to support the premise that offspring gender can influence specific types of parental preferences, I model and test the theory that offspring gender has an effect on parental investment decision making. I find that having only female of...
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متن کاملHousehold finance
The market can provide commitment devices and other mechanisms to help people overcome these biases, but it can also exacerbate them. In general, the market will have weak or missing incentives for resolving these problems when borrowers are naïve about their biases or underestimate their lack of understanding. Moreover, organizations may deliberately misinform or underinform their customers ab...
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ژورنال
عنوان ژورنال: Visnyk of the National Bank of Ukraine
سال: 2017
ISSN: 2414-987X,2414-987X
DOI: 10.26531/vnbu2017.242.015