Genesis of behavioral economics and its applicability in public finance

Welfare Economics and Public Finance

This contribution deals firstly with the differences between market action and government action, and then explores the justification for government intervention based on concepts of economic efficiency and equity. The chapter then proceeds to discuss individual cases in which unregulated private market outcomes are generally considered to violate this criterion.

Behavioral finance: Its history and its future

School of Economics and Finance Behavioral Implications of Shortlisting Procedures

We consider two-stage “shortlisting procedures” in which the menu of alternatives is first pruned by some process or criterion and then a binary relation is maximized. Given a particular first-stage process, our main result supplies a necessary and sufficient condition for choice data to be consistent with a procedure in the designated class. This result applies to any class of procedures with ...

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 ...

Cooperation in Infinite Games: Applications to Finance and Public Economics

Essay 1:Financial Intermediation, Trust, and Asset Values In thin financial markets where intermediation is necessary to facilitate exchange, the intermediary may have an informational advantage in addition to his cost advantage for acquiring the security. If all information is eventually revealed, the intermediary may have an incentive to truthfully reveal the value of the security to a custom...