Permanent URL to this publication: http://dx.doi.org/10.5167/uzh-51990
Becker, Ralf; Fischbacher, Urs; Hens, Thorsten (2002). Soft Landing of a Stock Market Bubble - An Experimental Study. Working paper series / Institute for Empirical Research in Economics No. 90, University of Zurich.
The paper investigates the effect of interest policy on price bubbles, trading behavior and portfolio choice in experimental stock markets. Anseries of experiments has 8 participants trade an asset over 15 periods. Alternatively, the participants can invest money in interest-bearing bonds. Treatment groups are subjected to an endogenous interest policy, while control groups experience a constant interest rate. Our stock markets are characterized by bubbles. While we observe a small positive impact of our interest policy on bubbles, the policy also strongly increases market volatility. On the other hand, concerning portfolio choice, we find evidencenfor value-driven (rational) investment behavior.
566 downloads since deposited on 29 Nov 2011
108 downloads since 12 months
|Item Type:||Working Paper|
|Communities & Collections:||03 Faculty of Economics > Department of Economics
Working Paper Series > Institute for Empirical Research in Economics (former)
|Dewey Decimal Classification:||330 Economics|
|Deposited On:||29 Nov 2011 21:26|
|Last Modified:||05 Apr 2016 15:10|
|Series Name:||Working paper series / Institute for Empirical Research in Economics|
Users (please log in): suggest update or correction for this item
Repository Staff Only: item control page