Herd Behavior in Financial Markets A Review

Policymakers often express concern that herding by financial market participants destabilizes markets and increases the fragility of the financial system. This paper provides an overview of the recent theoretical and empirical research on herd behavior in financial markets. It addresses the followin...

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Main Author: Sharma, Sunil
Other Authors: Bikhchandani, Sushil
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2000, 2000
Series:IMF Working Papers; Working Paper
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Summary:Policymakers often express concern that herding by financial market participants destabilizes markets and increases the fragility of the financial system. This paper provides an overview of the recent theoretical and empirical research on herd behavior in financial markets. It addresses the following questions: What precisely do we mean by herding? What could be the causes of herd behavior? What success have existing studies had in identifying such behavior? And what effect does herding have on financial markets?
Physical Description:32 p.
ISBN:1451846738
9781451846737