The dynamics of speculative behaviour. (English) Zbl 0777.90008

Summary: A number of recent empirical 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.


91B62 Economic growth models
91B24 Microeconomic theory (price theory and economic markets)
37D45 Strange attractors, chaotic dynamics of systems with hyperbolic behavior
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