Rationalizing trading frequency and returns
By: Yosef Bonaparte, Russell Cooper
Contributors: Cooper, Russell L.; National Bureau of Economic Research
Series: NBER working paper series -- working paper 16022; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16022.
Publisher: National Bureau of Economic Research
Published: 2010
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "Barber and Odean (2000) study the relationship between trading frequency and returns.  They find that households who trade more frequently have a lower net return than other households.  But all households have about the same gross return.  They argue that these results cannot emerge from a model with rational traders and instead attribute these findings to overconfidence.  Using a dynamic optimization approach, we find that neither a model with rational agents facing adjustment costs nor various models of overconfidence fit these facts"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 6/1/2010.

Includes bibliographical references.

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