Financial crises as herds: overturning the critiques

DOI10.1016/S0022-0531(03)00225-4zbMath1080.91029MaRDI QIDQ1763201

Patrick J. Kehoe, V. V. Chari

Publication date: 22 February 2005

Published in: Journal of Economic Theory (Search for Journal in Brave)

zbMATH Keywords

Capital flowsFinancial collapseInformation cascades

Mathematics Subject Classification ID

Related Items (17)

Informational cascades with endogenous prices: the role of risk aversion ⋮ Strategic investment evaluation ⋮ LEARNING DYNAMICS AND ENDOGENOUS CURRENCY CRISES ⋮ Herding and bank runs ⋮ Relative risk aversion and the transmission of financial crises ⋮ Taking the road less traveled by: Does conversation eradicate pernicious cascades? ⋮ Biased social learning ⋮ Learning about analysts ⋮ Introduction to the special issue on models of debt and debt crises ⋮ Herding with costly information ⋮ Information revelation through bunching ⋮ Information aggregation in financial markets with career concerns ⋮ Investment dynamics with common and private values ⋮ The time cost of information in financial markets ⋮ Error cascades in observational learning: an experiment on the Chinos game ⋮ On the role of responsiveness in rational herds ⋮ Path-dependent behavior and information leakage in financial markets

Cites Work

• Finite bubbles with short sale constraints and asymmetric information
• On the convergence of informational cascades
• Learning from others: A welfare analysis
• Market Crashes and Informational Avalanches
• Information Revelation and Strategic Delay in a Model of Investment
• Pathological Outcomes of Observational Learning
• Self-Fulfilling Debt Crises

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