Working Paper: NBER ID: w18905
Authors: Wei Xiong
Abstract: This paper reviews the quickly growing literature that builds on heterogeneous beliefs, a widely observed attribute of individuals, to explain bubbles, crises, and endogenous risk in financial markets.
Keywords: No keywords provided
JEL Codes: G01; G02; G1; G12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Heterogeneous beliefs (D80) | Speculative behavior (D84) |
| Speculative behavior (D84) | Inflated asset prices (G19) |
| Inflated asset prices (G19) | Financial crises (G01) |
| Heterogeneous beliefs (D80) | Inflated asset prices (G19) |
| Heterogeneous beliefs (D80) | Financial crises (G01) |