Download or read book The Herd Behavior Index written by Jan Dhaene and published by . This book was released on 2015 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: We introduce a new and easy to calculate measure for systemic risk in financial markets. This measure is baptized the Herd Behavior Index (HIX). It is model independent and forward looking, based on observed option data.In order to determine the degree of systemic risk or herd behavior in a financial market one should compare the observed market situation with the extreme (theoretical) situation under which the whole system is driven by a single factor.The Herd Behavior Index (HIX) is defined as the ratio of an option-based estimate of the risk-neutral variance of the market index and an option-based estimate of the corresponding variance of this extreme market situation. Using the theory of comonotonicity, the extreme situation can easily be backed out of the observed option quotes.The HIX can be determined for any market index provided an appropriate series of vanilla options is traded on this index as well as on its components. As an illustration, we determine historical values of the 30-days implied Herd Behavior Index for the Dow Jones Industrial Average, covering the period January 2003 to October 2009.
Download or read book Herd Behavior in Financial Markets written by Sushil Bikhchandani and published by . This book was released on 2000 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Contemporary Issues in Behavioral Finance written by Simon Grima and published by Emerald Group Publishing. This book was released on 2019-07-04 with total page 259 pages. Available in PDF, EPUB and Kindle. Book excerpt: This special edition of Contemporary Studies in Economic and Financial Analysis offers seventeen chapters from invited participants in the International Applied Social Science Congress, held in Turkey between the 19th and 21st April 2018.
Download or read book Hedge Funds and Financial Market Dynamics written by Mrs.Anne Jansen and published by International Monetary Fund. This book was released on 1998-05-15 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hedge funds are collective investment vehicles, often organized as private partnerships and resident offshore for tax and regulatory purposes. Their legal status places few restrictions on their portfolios and transactions, leaving their managers free to use short sales, derivative securities, and leverage to raise returns and cushion risk. This paper considers the role of hedge funds in financial market dynamics, with particular reference to the Asian crisis.
Download or read book Herd Behavior Towards the Market Index written by Daxue Wang and published by . This book was released on 2009 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper uses the cross-sectional variance of the betas to study herd behavior towards market index in major developed and emerging financial markets (categorized as developed group, Asian group, and Latin American group). We propose a robust regression technique to calculate the betas of the CAPM and those of the Fama-French three-factor model, with an intention to diminish the impact of multivariate outliers in return data. Through the estimated values obtained from a state space model, we examine the evolution of herding measures, especially their pattern around sudden events such as the 1997-1998 financial crises. This 1997-1998 turmoil turns out to have formed a turning point for most of the financial markets. We document a higher level of herding in emerging markets than in developed markets. We also find that the correlation of herding between two markets from the same group is higher than that between two markets from different groups. This paper will shed light on the calculation of beta and on the financial policy to understand the dynamics of herding in financial markets.
Download or read book Stochastic Modeling of Herd Behavior Indices written by Florence Guillaume and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Instincts of the Herd in Peace and War written by Wilfred Trotter and published by . This book was released on 1917 with total page 226 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Behavioral Code written by Benjamin van Rooij and published by Beacon Press. This book was released on 2021-10-26 with total page 314 pages. Available in PDF, EPUB and Kindle. Book excerpt: A 2022 PROSE Award finalist in Legal Studies and Criminology A 2022 American Bar Association Silver Gavel Award Finalist A Behavioral Scientist’s Notable Book of 2021 Freakonomics for the law—how applying behavioral science to the law can fundamentally change and explain misbehavior Why do most Americans wear seatbelts but continue to speed even though speeding fines are higher? Why could park rangers reduce theft by removing “no stealing” signs? Why was a man who stole 3 golf clubs sentenced to 25 years in prison? Some laws radically change behavior whereas others are consistently ignored and routinely broken. And yet we keep relying on harsh punishment against crime despite its continued failure. Professors Benjamin van Rooij and Adam Fine draw on decades of research to uncover the behavioral code: the root causes and hidden forces that drive human behavior and our responses to society’s laws. In doing so, they present the first accessible analysis of behavioral jurisprudence, which will fundamentally alter how we understand the connection between law and human behavior. The Behavioral Code offers a necessary and different approach to battling crime and injustice that is based in understanding the science of human misconduct—rather than relying on our instinctual drive to punish as a way to shape behavior. The book reveals the behavioral code’s hidden role through illustrative examples like: • The illusion of the US’s beloved tax refund • German walls that “pee back” at public urinators • The $1,000 monthly “good behavior” reward that reduced gun violence • Uber’s backdoor “Greyball” app that helped the company evade Seattle’s taxi regulators • A $2.3 billion legal settlement against Pfizer that revealed how whistleblower protections fail to reduce corporate malfeasance • A toxic organizational culture playing a core role in Volkswagen’s emissions cheating scandal • How Peter Thiel helped Hulk Hogan sue Gawker into oblivion Revelatory and counterintuitive, The Behavioral Code catalyzes the conversation about how the law can effectively improve human conduct and respond to some of our most pressing issues today, from police misconduct to corporate malfeasance.
Download or read book The Ultimate Horse Behavior and Training Book written by Linda Tellington-Jones and published by Trafalgar Square Books. This book was released on 2006-09-01 with total page 603 pages. Available in PDF, EPUB and Kindle. Book excerpt: Finally, a comprehensive collection of world-renowned equine expert Linda Tellington-Jones' healing equine bodywork and training exercises, for use both on the ground and in the saddle. In one fabulously illustrated book, those new to Linda's approach are provided with a clear, step-by-step introduction to the Tellington Method, while those familiar with her work finally have the ultimate go-to reference. The book is divided into three parts: Part One briefly explains the background of the Tellington Method and then discusses the reasons for unwanted behavior and poor attitude in horses. Part Two, arranged alphabetically, contains a compendium of 72 common behavioral, training and health issues, many of which horse people face on a daily basis. In this A to Z format, from Aggressive to Other Horses to Weaving, Linda discusses the possible reasons for these behaviors or problems and offers conventional methods of solving these challenges, as well as training solutions using the Tellington Method. Part Three presents—for the first time in one volume—the complete body of work that up the Tellington Method: the Tellington TTouches, Ground Exercises, and Ridden Work. At the end of this section, there is also a detailed case study, which includes 49 photographs showing every step along the way to successfully teaching your horse to load.
Download or read book The Power of the Herd written by Linda Kohanov and published by New World Library. This book was released on 2015-07-20 with total page 466 pages. Available in PDF, EPUB and Kindle. Book excerpt: Linda Kohanov is beloved for her groundbreaking articulation of “the way of the horse,” an experiential wisdom known to riders for centuries but little studied or adapted to off-horse use. Now Kohanov takes those horse-inspired insights on the nonverbal elements of exceptional communication and leadership into the realms of our workplaces and relationships. Here we explore the benefits of “nonpredatory power” in developing assertiveness, fostering creativity, dealing with conflict, and heightening mind-body awareness. In “A Brief History of Power,” the first part of this far-reaching book, Kohanov profiles cultural innovators who employed extraordinary nonverbal leadership skills to change history, usually on horseback: Winston Churchill, George Washington, Alexander the Great, and Siddhartha Gautama (the Buddha), among others. She also draws on the behavior of mature horse herds, as well as the herding cultures of Africa and Mongolia, to debunk theories of dominance hierarchies, challenge ingrained notions of “survival of the fittest,” and demonstrate the power of a consensual leadership in which governing roles are fluid. Kohanov then adapts these lessons into twelve powerful guiding principles we can all incorporate into our work and personal lives. Eloquent and provocative, this is horse sense for everyone who seeks to thrive in the herds we all run in — our communities, careers, families, and friendships.
Download or read book Rational Herds written by Christophe Chamley and published by Cambridge University Press. This book was released on 2004 with total page 420 pages. Available in PDF, EPUB and Kindle. Book excerpt: Publisher Description
Download or read book Beyond Traditional Probabilistic Methods in Economics written by Vladik Kreinovich and published by Springer. This book was released on 2018-11-24 with total page 1157 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents recent research on probabilistic methods in economics, from machine learning to statistical analysis. Economics is a very important – and at the same a very difficult discipline. It is not easy to predict how an economy will evolve or to identify the measures needed to make an economy prosper. One of the main reasons for this is the high level of uncertainty: different difficult-to-predict events can influence the future economic behavior. To make good predictions and reasonable recommendations, this uncertainty has to be taken into account. In the past, most related research results were based on using traditional techniques from probability and statistics, such as p-value-based hypothesis testing. These techniques led to numerous successful applications, but in the last decades, several examples have emerged showing that these techniques often lead to unreliable and inaccurate predictions. It is therefore necessary to come up with new techniques for processing the corresponding uncertainty that go beyond the traditional probabilistic techniques. This book focuses on such techniques, their economic applications and the remaining challenges, presenting both related theoretical developments and their practical applications.
Download or read book Administrative Burden written by Pamela Herd and published by Russell Sage Foundation. This book was released on 2019-01-09 with total page 360 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bureaucracy, confusing paperwork, and complex regulations—or what public policy scholars Pamela Herd and Donald Moynihan call administrative burdens—often introduce delay and frustration into our experiences with government agencies. Administrative burdens diminish the effectiveness of public programs and can even block individuals from fundamental rights like voting. In AdministrativeBurden, Herd and Moynihan document that the administrative burdens citizens regularly encounter in their interactions with the state are not simply unintended byproducts of governance, but the result of deliberate policy choices. Because burdens affect people’s perceptions of government and often perpetuate long-standing inequalities, understanding why administrative burdens exist and how they can be reduced is essential for maintaining a healthy public sector. Through in-depth case studies of federal programs and controversial legislation, the authors show that administrative burdens are the nuts-and-bolts of policy design. Regarding controversial issues such as voter enfranchisement or abortion rights, lawmakers often use administrative burdens to limit access to rights or services they oppose. For instance, legislators have implemented administrative burdens such as complicated registration requirements and strict voter-identification laws to suppress turnout of African American voters. Similarly, the right to an abortion is legally protected, but many states require women seeking abortions to comply with burdens such as mandatory waiting periods, ultrasounds, and scripted counseling. As Herd and Moynihan demonstrate, administrative burdens often disproportionately affect the disadvantaged who lack the resources to deal with the financial and psychological costs of navigating these obstacles. However, policymakers have sometimes reduced administrative burdens or shifted them away from citizens and onto the government. One example is Social Security, which early administrators of the program implemented in the 1930s with the goal of minimizing burdens for beneficiaries. As a result, the take-up rate is about 100 percent because the Social Security Administration keeps track of peoples’ earnings for them, automatically calculates benefits and eligibility, and simply requires an easy online enrollment or visiting one of 1,200 field offices. Making more programs and public services operate this efficiently, the authors argue, requires adoption of a nonpartisan, evidence-based metric for determining when and how to institute administrative burdens, with a bias toward reducing them. By ensuring that the public’s interaction with government is no more onerous than it need be, policymakers and administrators can reduce inequality, boost civic engagement, and build an efficient state that works for all citizens.
Download or read book High Returns from Low Risk written by Pim van Vliet and published by John Wiley & Sons. This book was released on 2017-01-17 with total page 180 pages. Available in PDF, EPUB and Kindle. Book excerpt: Believing "high-risk equals high-reward" is holding your portfolio hostage High Returns from Low Risk proves that low-volatility, low-risk portfolios beat high-volatility portfolios hands down, and shows you how to take advantage of this paradox to dramatically improve your returns. Investors traditionally view low-risk stocks as safe but unprofitable, but this old canard is based on a flawed premise; it fails to see beyond the monthly horizon, and ignores compounding returns. This book updates the thinking and brings reality to modelling to show how low-risk stocks actually outperform high-risk stocks by an order of magnitude. Easy to read and easy to implement, the plan presented here will help you construct a portfolio that delivers higher returns per unit of risk, and explains how to achieve excellent investment results over the long term. Do you still believe that investors are rewarded for bearing risk, and that the higher the risk, the greater the reward? That old axiom is holding you back, and it is time to start seeing the whole picture. This book shows you, through deep historical simulation, how to reap the rewards of smarter investing. Learn how and why low-risk, low-volatility stocks beat the market Discover the formula that outperforms Greenblatt's Construct your own low-risk portfolio Select the right ETF or low-risk fund to manage your money Great returns and lower risk sound like a winning combination — what happens once everyone is doing it? The beauty of the low-risk strategy is that it continues to work even after the paradox is widely known; long-term investment success is possible for anyone who can shake off the entrenched wisdom and go low-risk. High Returns from Low Risk provides the proof, model and strategy to reign in your exposure while raking in the profit.
Download or read book Science And Human Behavior written by B.F Skinner and published by Simon and Schuster. This book was released on 2012-12-18 with total page 484 pages. Available in PDF, EPUB and Kindle. Book excerpt: The psychology classic—a detailed study of scientific theories of human nature and the possible ways in which human behavior can be predicted and controlled—from one of the most influential behaviorists of the twentieth century and the author of Walden Two. “This is an important book, exceptionally well written, and logically consistent with the basic premise of the unitary nature of science. Many students of society and culture would take violent issue with most of the things that Skinner has to say, but even those who disagree most will find this a stimulating book.” —Samuel M. Strong, The American Journal of Sociology “This is a remarkable book—remarkable in that it presents a strong, consistent, and all but exhaustive case for a natural science of human behavior…It ought to be…valuable for those whose preferences lie with, as well as those whose preferences stand against, a behavioristic approach to human activity.” —Harry Prosch, Ethics
Download or read book Modeling and Predicting Herd Behavior Using Jacobi Processes written by Jonas De Winter and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Diversification is used by many investors to reduce the risk of their portfolio. The degree of diversification can be summarized by herd behavior indices, which give an idea of the systematic risk. The herd behavior indices take values between 0 and 1 and measure how strongly the stocks, composing a market, move together. Such behavior can neutralize the diversification investors seek. Herd behavior can thus be used to get a better idea of the right moment to enter a dispersion trade. To this end, we should not only take into account the current degree of herd behavior, but also its prediction for the future. Therefore, we need to model herd behavior. We will discuss two herd behavior measures, namely the HIX and the CIX index. Starting from the statistical analysis of historical time series of the HIX and the CIX index, we formulate the properties the model should have and arrive at a mean reverting stochastic process that takes values in \[0,1\]: the Jacobi process. As numerical study, we calibrate this process on different time series and investigate the stability of the parameters throughout time. Based on this model, we then make forecasts for future values of herd behavior indices and we analyze the errors we make. At last we compare the model with a previous approach, which consists of mapping some Itô process to the unit interval.
Download or read book Data Science for Financial Econometrics written by Nguyen Ngoc Thach and published by Springer Nature. This book was released on 2020-11-13 with total page 633 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book offers an overview of state-of-the-art econometric techniques, with a special emphasis on financial econometrics. There is a major need for such techniques, since the traditional way of designing mathematical models – based on researchers’ insights – can no longer keep pace with the ever-increasing data flow. To catch up, many application areas have begun relying on data science, i.e., on techniques for extracting models from data, such as data mining, machine learning, and innovative statistics. In terms of capitalizing on data science, many application areas are way ahead of economics. To close this gap, the book provides examples of how data science techniques can be used in economics. Corresponding techniques range from almost traditional statistics to promising novel ideas such as quantum econometrics. Given its scope, the book will appeal to students and researchers interested in state-of-the-art developments, and to practitioners interested in using data science techniques.
