Herd Behavior in Financial Markets: A Review
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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?
Series:
Working Paper No. 2000/048
Subject:
Asset and liability management Asset prices Asset valuation Financial institutions Financial markets Mutual funds Pension spending Prices Stock markets Stocks
English
Publication Date:
March 1, 2000
ISBN/ISSN:
9781451846737/1018-5941
Stock No:
WPIEA0482000
Pages:
32
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