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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.

MSC:

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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