Year: 2009
Type: report
Abstract: We survey the recent literature on learning in financial markets.Our main theme is that many financial market phenomena that appear puzzling at first sight are easier to understand once we recognize that parameters in financial models are uncertain and subject to learning.We discuss phenomena related to the volatility and predictability of asset returns, stock price bubbles, portfolio choice, mutual fund flows, trading volume, and firm profitability, among others.
DOI: 10.3386/w14646
Authors: Lubos Pastor, Pietro Veronesi
Institutions: National Bureau of Economic Research, University of Chicago
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3022398951