Financial Revolution: From Traditional Finance to Behavioral and Neuro-finance

From Efficient Markets Theory to Behavioral Finance

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From Efficient Market Theory to Behavioral Finance

The efficient markets theory reached the height of its dominance in academic circles around the 1970s. Faith in this theory was eroded by a succession of discoveries of anomalies, many in the 1980s, and of evidence of excess volatility of returns. Finance literature in this decade and after suggests a more nuanced view of the value of the efficient markets theory, and, starting in the 1990s, a ...

Behavioral Finance Models and Behavioral Biases in Stock Price Forecasting

Stock market is affected by news and information. If the stock market is not efficient, the reaction of stock price to news and information will place the stock market in overreaction and under-reaction states. Many models have been already presented by using different tools and techniques to forecast the stock market behavior. In this study, the reaction of stock price in the stock market was ...

Commentary: The Housing Finance Revolution

Let me begin by saying that I enjoyed reading the paper and learned a great deal from it. Most importantly, I also agreed with almost all of their analysis and conclusions. That said, one possible shortcoming of the paper is that more emphasis might have been put on the interdependencies between the individual forces that the authors suggest have driven the housing finance revolution. As we ass...

SUKANTO BHATTACHARYA Utility, Rationality and Beyond – From Behavioral Finance to Informational Finance