This paper develops the CIR model. In this model, labor is introduced in the production function and leisure in the direct utility function. We examine how the trade-off between labor and leisure would affect asset pr...This paper develops the CIR model. In this model, labor is introduced in the production function and leisure in the direct utility function. We examine how the trade-off between labor and leisure would affect asset prices and derive a familiar principal partial differential equation which asset prices must satisfy. The solution of this equation gives the equilibrium price of any asset in terms of the underlying real variables in economy.展开更多
With the acceleration of economic globalization and financial liberalization,factors of asset prices such as stock,bond and real estate and so on become important economic variables that affect inflation. After a brie...With the acceleration of economic globalization and financial liberalization,factors of asset prices such as stock,bond and real estate and so on become important economic variables that affect inflation. After a brief review of the latest literature,this paper analyzes the specific conduction mechanism from different aspects of consumption,investment,credit and exchange rate channels in which asset prices affect inflation. Then,this paper analyzes the monthly data from January,2002 to December,2013 with the PLS method(partial least squares regression method)and discusses whether a structural change has taken place in the inflation mechanism during this period. Finally,policy recommendations are provided.展开更多
The paper asserts that the misperceptions of noise traders are a behavioral bias characterized by overreactions. By introducing the overreaction coefficient, we provide an explanation for the volatility of asset price...The paper asserts that the misperceptions of noise traders are a behavioral bias characterized by overreactions. By introducing the overreaction coefficient, we provide an explanation for the volatility of asset prices and bubbles in a simplified framework that is similar to the DSSW （1990a） model. When the underlying asset is involved with a fundamental shock, noise traders will generally overreact to it, which creates an ＂overreaction risk＂. This kind of risk will make the asset prices more volatile, and even make up asset bubbles. Therefore, asset bubbles can be regarded as a psychological phenomenon, and are actually the results of the psychological changing process of noise traders.展开更多
文摘This paper develops the CIR model. In this model, labor is introduced in the production function and leisure in the direct utility function. We examine how the trade-off between labor and leisure would affect asset prices and derive a familiar principal partial differential equation which asset prices must satisfy. The solution of this equation gives the equilibrium price of any asset in terms of the underlying real variables in economy.
文摘With the acceleration of economic globalization and financial liberalization,factors of asset prices such as stock,bond and real estate and so on become important economic variables that affect inflation. After a brief review of the latest literature,this paper analyzes the specific conduction mechanism from different aspects of consumption,investment,credit and exchange rate channels in which asset prices affect inflation. Then,this paper analyzes the monthly data from January,2002 to December,2013 with the PLS method(partial least squares regression method)and discusses whether a structural change has taken place in the inflation mechanism during this period. Finally,policy recommendations are provided.
文摘The paper asserts that the misperceptions of noise traders are a behavioral bias characterized by overreactions. By introducing the overreaction coefficient, we provide an explanation for the volatility of asset prices and bubbles in a simplified framework that is similar to the DSSW （1990a） model. When the underlying asset is involved with a fundamental shock, noise traders will generally overreact to it, which creates an ＂overreaction risk＂. This kind of risk will make the asset prices more volatile, and even make up asset bubbles. Therefore, asset bubbles can be regarded as a psychological phenomenon, and are actually the results of the psychological changing process of noise traders.
