Financial crises as herds
Subtitle: overturning the critiques
By: V. V. Chari and Patrick J. Kehoe.
Contributors: Kehoe, Patrick J.
Series: Federal Reserve Bank of Minneapolis, Research Department staff report ;; 316; Staff report (Federal Reserve Bank of Minneapolis. Research Dept. : Online) ;; 316.
Publisher: Federal Reserve Bank of Minneapolis
Published: 2003
Place of publication: [Minneapolis, Minn.]
Language: eng
Format: Electronic resource
Subjects: Financial crises -- Econometric models.
Description: "Financial crises are widely argued to be due to herd behavior.  Yet recently developed models of herd behavior have been subjected to two critiques which seem to make them inapplicable to financial crises.  Herds disappear from these models if two of their unappealing assumptions are modified: if their zero-one investment decisions are made continuous and if their investors are allowed to trade assets with market-determined prices.  However, both critiques are overturned--herds reappear in these models--once another of their unappealing assumptions is modified: if, instead of moving in a prespecified order, investors can move whenever they choose"--Federal Reserve Bank of Minneapolis web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 11/17/2004.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.