Publications
Detailed Information
The Effects of Heterogeneous Beliefs on a Risky Asset's Price and Trading Volume
Cited 0 time in
Web of Science
Cited 0 time in Scopus
- Authors
- Issue Date
- 1992-04
- Citation
- Seoul Journal of Economics, Vol.5 No.2, pp. 113-125
- Keywords
- trade generating process ; Arrow-Debreu sense ; Blume and Friend
- Abstract
- This paper examines the effects of different opinions among investors on a risky asset's price and trading volume in a two-period, two-person general equilibrium setting. A comparative static analysis predicts the following: Assuming that investors differ only in subjective probability beliefs about future security payoffs, an increased dispersion of beliefs will decrease the asset price and increase the trading volume in the empirically plausible range of the relative risk aversion coefficient.
- Language
- English
- Files in This Item:
Item View & Download Count
Items in S-Space are protected by copyright, with all rights reserved, unless otherwise indicated.