Differential Awareness, Financial Innovation and Financial Crises

17 Pages Posted: 21 Aug 2014

See all articles by John Quiggin

John Quiggin

University of Queensland - Business School

Hammad Siddiqi

University of the Sunshine Coast-School of Business

Date Written: August 20, 2014

Abstract

In this paper, it is argued that differential awareness plays a crucial role in the operation of financial markets. The interaction between awareness and arbitrage is crucial in explaining both beneficial and harmful financial innovations. Financial crises may be explained as the result of sudden changes in awareness, which may be exogenous or endogenous.

Keywords: unawareness, financial innovation

JEL Classification: G02

Suggested Citation

Quiggin, John and Siddiqi, Hammad, Differential Awareness, Financial Innovation and Financial Crises (August 20, 2014). Available at SSRN: https://ssrn.com/abstract=2483445 or http://dx.doi.org/10.2139/ssrn.2483445

John Quiggin

University of Queensland - Business School ( email )

Brisbane, Queensland 4072
Australia

Hammad Siddiqi (Contact Author)

University of the Sunshine Coast-School of Business ( email )

Brisbane, QLD 70010
Australia
+61404900497 (Phone)

HOME PAGE: http://www.usc.edu.au/staff-repository/dr-hammad-siddiqi

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
30
Abstract Views
427
PlumX Metrics