Behaviour of Households on Financial Investments Market

A Financial Market Model Incorporating Herd Behaviour

Herd behaviour in financial markets is a recurring phenomenon that exacerbates asset price volatility, and is considered a possible contributor to market fragility. While numerous studies investigate herd behaviour in financial markets, it is often considered without reference to the pricing of financial instruments or other market dynamics. Here, a trader interaction model based upon informati...

Market Efficiency in the Financial Services Industry: Buyer Search Behaviour on an Electronic Commodity Market

Due to the immateriality of financial services and products they lend themselves handsomely for sale on the WWW. This may be one of the main reasons why the financial services industry has gained a cutting edge in the net with respect to other industries. Thus, at the beginning of the third millennium, the market for financial services is undergoing a fundamental shift since it is questionable ...

Multiscale behaviour of volatility autocorrelations in a financial market

It is well known that stock market returns are uncorrelated on lags larger than a single day, in agreement with the hypothesis of efficient market. On the contrary, absolute returns have memory for longer times; this phenomenon is known in financial literature as clustering of volatility. In ARCH-GARCH models [1–3], volatility memory is longer than a single time step but it decays exponentially...

Financial market crisis and financial market channel

Financial planning for young households

We analyze the financial planning problems of young households whose main decisions are how to finance the purchase of a house (liabilities) and how to allocate investments in pension savings schemes (assets). The problems are solved using a multi–stage stochastic programming model where the uncertainty is described by a scenario tree generated from a vector auto-regressive process for equity r...