Financial leverage and market volatility with diverse beliefs

DOI10.1007/s00199-010-0548-8zbMath1214.91065OpenAlexW2089971568MaRDI QIDQ540414

Wen-Chung Guo, Ho-Mou Wu, Frank Yong Wang

Publication date: 3 June 2011

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

Full work available at URL: https://doi.org/10.1007/s00199-010-0548-8

zbMATH Keywords

leverage effectdiverse beliefsfinancial leveragepyramiding/depyramiding effectstock price volatility

Mathematics Subject Classification ID

General equilibrium theory (91B50)

Related Items (6)

Welfare effects of short-sale constraints under heterogeneous beliefs ⋮ Monetary policy and heterogeneous expectations ⋮ Business cycle amplification with heterogeneous expectations ⋮ The diversity of forecasts from macroeconomic models of the US economy ⋮ Diverse beliefs and time variability of risk premia ⋮ Expectational coordination in simple economic contexts. Concepts and analysis with emphasis on strategic substituabilities

Cites Work

• Diverse beliefs and time variability of risk premia
• On the structure and diversity of rational beliefs
• Speculative trading with rational beliefs and endogenous uncertainty
• Asset price volatility and trading volume with rational beliefs
• Endogenous uncertainty in a general equilibrium model with price contingent contracts
• Speculative Investor Behavior in a Stock Market with Heterogeneous Expectations
• Competitive Speculation
• Markets with a Continuum of Traders
• Existence of Competitive Equilibria in Markets with a Continuum of Traders
• Speculative Investor Behavior and Learning

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