FINANCIAL MARKET SPECULATIVE TRANSACTIONS

Speculative Bubbles and Financial Crisis

Why are asset prices so much more volatile and so often detached from their fundamental values? Why does the bursting of …nancial bubbles depress the real economy? This paper addresses these questions by constructing an in…nite-horizon heterogeneous agent general equilibrium model with speculative bubbles. We characterize conditions under which storable goods, regardless of their intrinsic valu...

Financial market crisis and financial market channel

Wealth-Driven Competition in a Speculative Financial Market: Examples with Maximizing Agents

This paper demonstrates how both quantitative and qualitative results of general, analytically tractable asset-pricing model in which heterogeneous agents behave consistently with a constant relative risk aversion assumption can be applied to the particular case of “linear” investment choices. In this way it is shown how the framework developed in Anufriev and Bottazzi (2005) can be used inside...

Fearless versus Fearful Speculative Financial Bubbles

Using a recently introduced rational expectation model of bubbles, based on the interplay between stochasticity and positive feedbacks of prices on returns and volatility, we develop a new methodology to test how this model classifies 9 time series that have been previously considered as bubbles ending in crashes. The model predicts the existence of two anomalous behaviors occurring simultaneou...

Performance Enhancement of Read-only Transactions Using Speculative Locking Protocol

A read-only transaction (ROT) does not modify any data. The main issues regarding processing ROTs are correctness, data currency and performance. Two-phase Locking (2PL) protocol is widely used for concurrency control with serializabilty as correctness criteria. Even though 2PL processes ROTs correctly with no data currency related issues, the performance deteriorates as data contention increas...