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Social and Behavioral Sciences Commons™

Open Access. Powered by Scholars. Published by Universities.®

2012

Claremont Colleges

Theses/Dissertations

Behavioral Economics

Articles 1 - 5 of 5

Full-Text Articles in Social and Behavioral Sciences

Examining The Role Of Immigration In Crime Decline Across United States Cities, Brianna J. Losoya Jan 2012

Examining The Role Of Immigration In Crime Decline Across United States Cities, Brianna J. Losoya

CMC Senior Theses

Despite previous research in this area, the relationship between immigration and crime in the United States remains ambiguous and surrounded by misconceptions. However, recently, scholars have suggested that, despite the claims of policy-makers and popularized sociological theories, large immigrant concentrations may be linked with lower as opposed to higher crime rates. In the past, research in this area has been imprecise due to it its implementation of cross-sectional analyses for a limited selection of geographic regions. However, through the implementation of time-series procedures and the use of annual data for metropolitan statistical areas during the 2005–2010 periods, the present study …

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Finding Profitability Of Technical Trading Rules In Emerging Market Exchange Traded Funds, Austin P. Hallett Jan 2012

Finding Profitability Of Technical Trading Rules In Emerging Market Exchange Traded Funds, Austin P. Hallett

CMC Senior Theses

This thesis further investigates the effectiveness of 15 variable moving average strategies that mimic the trading rules used in the study by Brock, Lakonishok, and LeBaron (1992). Instead of applying these strategies to developed markets, unique characteristics of emerging markets offer opportunity to investors that warrant further research. Before transaction costs, all 15 variable moving average strategies outperform the naïve benchmark strategy of buying and holding different emerging market ETF's over the volatile period of 858 trading days. However, the variable moving averages perform poorly in the "bubble" market cycle. In fact, sell signals become more unprofitable than buy signals …

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A Study In Market Micromanagement: The Asymmetrical Effects Of The 2008 Short Sale Ban On Stocks With And Without Traded Options, James W. Weyerhaeuser Jan 2012

A Study In Market Micromanagement: The Asymmetrical Effects Of The 2008 Short Sale Ban On Stocks With And Without Traded Options, James W. Weyerhaeuser

CMC Senior Theses

This study provides an empirical analysis of the 2008 short sale ban. The evidence suggests that the presence of tradable options plays a crucial role in determining the effect of a short sale ban. Results show that if there are no traded options on a stock, the short sale ban brought abnormal returns of roughly +8%. However if there are traded options on a stock, the market maker exemptions nullify the positive effects of the ban. Furthermore, for the banned stocks that do experience positive abnormal returns during the ban, the lifting of the ban causes a prompt reversal of …

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Can Online Sentiment Help Predict Dow Jones Industrial Average Returns?, Aria K. Krumwiede Jan 2012

Can Online Sentiment Help Predict Dow Jones Industrial Average Returns?, Aria K. Krumwiede

CMC Senior Theses

In this paper, we explore the relationship between a Global Mood Time Series, provided by Wall Street Birds, and the Dow Jones Industrial Average (DJIA) from April 2011 to December 2011. My econometric results show that there is no long run equilibrium relationship between the level of global mood and the level of the DJIA. These results apply to the whole period, as well as in the six-month subperiods. Furthermore, daily changes in global mood do not Granger cause DJIA returns. However, changes in global mood do appear to be useful in forecasting the volatility of the DJIA, and my …

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Aggregated Versus Disaggregated Forward Looking Information: Effects On Risk Taking, Rishabh Parekh Jan 2012

Aggregated Versus Disaggregated Forward Looking Information: Effects On Risk Taking, Rishabh Parekh

CMC Senior Theses

In previous research, aggregation of returns has been found as a way to counteract the risk averse behavior that is the result of investors' myopia. This paper expands the study of aggregation by analyzing its effect on forward looking probabilities. Namely, through the disaggregation of future information, subjects become myopic and trade with varying risk preferences. In an experimental market, subjects trading securities with disaggregated forward looking information are found to 'buy high and sell low', while subjects trading the same securities, but with aggregated information, trade with more consistent risk preferences.

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