Abstract

http://ssrn.com/abstract=349660
 
 

References (67)



 
 

Citations (97)



 


 



From Efficient Market Theory to Behavioral Finance


Robert J. Shiller


Yale University - Cowles Foundation; National Bureau of Economic Research (NBER); Yale University - International Center for Finance

October 2002

Cowles Foundation Discussion Paper No. 1385

Abstract:     
The efficient markets theory reached the height of its dominance in academic circles around the 1970s. Faith in this theory was eroded by a succession of discoveries of anomalies, many in the 1980s, and of evidence of excess volatility of returns. Finance literature in this decade and after suggests a more nuanced view of the value of the efficient markets theory, and, starting in the 1990s, a blossoming of research on behavioral finance. Some important developments in the 1990s and recently include feedback theories, models of the interaction of smart money with ordinary investors, and evidence on obstacles to smart money.

Number of Pages in PDF File: 44

Keywords: Speculative Markets, Rational Expectations, Psychology, Anomalies, Excess Volatility, Feedback, Smart Money, Limits to Arbitrage, Short Sales

JEL Classification: G14

working papers series





Download This Paper

Date posted: November 8, 2002  

Suggested Citation

Shiller, Robert J., From Efficient Market Theory to Behavioral Finance (October 2002). Cowles Foundation Discussion Paper No. 1385. Available at SSRN: http://ssrn.com/abstract=349660

Contact Information

Robert J. Shiller (Contact Author)
Yale University - Cowles Foundation ( email )
Box 208281
New Haven, CT 06520-8281
United States
203-432-3708 (Phone)
203-432-6167 (Fax)
HOME PAGE: http://www.econ.yale.edu/~shiller/
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
203-432-3708 (Phone)
Yale University - International Center for Finance ( email )
Box 208200
New Haven, CT 06520
United States
203-432-3708 (Phone)
203-432-6167 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 33,403
Downloads: 13,002
Download Rank: 117
References:  67
Citations:  97

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.312 seconds