The Dynamics of Speculative Behaviour
UTS Working Paper No. 13
35 Pages Posted: 17 Feb 2006
Date Written: January 1992
A number of recent emirical studies cast some doubt on the random walk theory of asset prices and suggest these display significant transitory components and complex chaotic motion. This paper analyses a model of fundamentalists and chartists which can generate a number of dynamic regimes which are compatible with the recent empirical evidence.
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