The analysis focuses on the predictive abilities of individual survey participants regarding macroeconomic expectations, building on Crump's 2015 research. It estimates the elasticity of intertemporal substitution (EIS) using their model, yielding a coefficient of 0.839, which slightly surpasses earlier findings in the literature. This study contributes to empirical monetary economics by providing insights into how individual expectations can influence broader economic indicators.
An analysis of France, Germany and Italy
The paper analyzes profitability patterns in the stock markets of Germany, France, and Italy, confirming that more profitable firms generally achieve higher risk-adjusted returns. It aligns with prior European research, highlighting the presence of profitability anomalies in Germany and France, while these anomalies are notably absent in Italy. The study identifies five out of seven profitability measures as effective in detecting these anomalies, contributing valuable insights to asset pricing and management within the context of European financial markets.
Exploring the disposition effect, this seminar paper analyzes why investors tend to sell winning investments prematurely while holding onto losing ones. It examines various theories, including mental accounting, prospect theory, and self-control, to understand the psychological factors influencing these behaviors. By integrating multiple perspectives, the paper provides a comprehensive look at the emotional and cognitive processes that shape investment decisions.
The paper explores the potential of international risk sharing for emerging markets, focusing on financial integration and liberalization. It examines the incentives provided by financial integration and how they can benefit emerging market economies through enhanced risk sharing. Additionally, the study investigates the impact of significant foreign capital inflows on risk sharing, assessing whether these inflows yield positive effects for these economies.