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Full-Text Articles in Econometrics
A Piece Of The Puzzle: Can Behavioral Insights Help Understand Currency Returns?, Samuel D. Russell
A Piece Of The Puzzle: Can Behavioral Insights Help Understand Currency Returns?, Samuel D. Russell
Senior Theses and Projects
This paper finds further evidence using a Cointegrated Vector Autoregression to support claims against the Uncovered Interest Rate Parity (UIP) ex post, referred to as the Forward Discount Anomaly (Fama, 1984). This anomaly suggests predictable profits simply from investing in a country with a higher interest rate. Potential explanations could be attributed to risk or deviations from the rational expectations hypothesis. UIP ex ante is tested using survey data. These results indicate a time-‐ varying risk premium. Further it is found that this premium is related to the gap between the exchange rate and Purchasing-‐Power-‐Parity value. Additionally it is determined …
Incidental Emotions And Trust Decisions: Visceral Influences On Economic Behavior, Idan Aviv Elmelech
Incidental Emotions And Trust Decisions: Visceral Influences On Economic Behavior, Idan Aviv Elmelech
Senior Projects Spring 2014
In recent years, trust has emerged as a key concept in the understanding of cooperation between individuals and organizations. It has been implicated as an important variable in topics ranging from individual decision-making in finance, to macroeconomic growth and stability in developing countries. This thesis employs an experimental design to investigate the impact of emotions on trust behavior. In the experiment, emotion was induced in participants who then played a basic trust game originally proposed by Berg, Dickhaut, & McCabe (1995). Results indicate that emotions do impact trust, with anger decreasing trust behavior. However, the data also reveal that individual …