Found 3 article(s) for author 'Assets'

Extrapolation and Bubbles

Extrapolation and Bubbles. Robin Greenwood, Andrei Shleifer, September 2015, Paper, “We present an extrapolative model of bubbles. In the model, many investors form their demand for a risky asset by weighing two signals—an average of the asset’s past price changes and the asset’s degree of overvaluation. The two signals are in conflict, and investors “waver” over time in the relative weight they put on them. The model predicts that good news about fundamentals can trigger large price bubbles. We analyze the patterns of cash-flow news that generate the largest bubbles, the reasons why bubbles collapse, and the frequency with which they occur. The model also predicts that bubbles will be accompanied by high trading volume, and that volume increases with past asset returns. We present empirical evidence that bears on some of the model’s distinctive predictions.Link

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The Not-So-Common-Wealth of Australia: Evidence for a Cross-Cultural Desire for a More Equal Distribution of Wealth.

The Not-So-Common-Wealth of Australia: Evidence for a Cross-Cultural Desire for a More Equal Distribution of Wealth. Michael I. Norton, December 2014, Paper. “Recent evidence suggests that Americans underestimate wealth inequality in the United States and favor a more equal wealth distribution (Norton & Ariely). Does this pattern reflect ideological dynamics unique to the United States, or is the phenomenon evident in other developed economies-such as Australia? We assessed Australians’ perceived and ideal wealth distributions and compared them to the actual wealth distribution. Although the United States and Australia differ…” Link

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Prodigy Network: Democratizing Real Estate Design and Financing

Prodigy Network: Democratizing Real Estate Design and Financing. Karim R. Lakhani, March 2014, Case. “This case follows Rodrigo Nino, founder and CEO of commercial real estate development company Prodigy Network, as he develops an equity-based crowdfunding model for small investors to access commercial real estate in Colombia, then tries out the model in the U.S. U.S. regulations, starting with the Securities Act of 1933, effectively barred sponsors from soliciting small investors for large commercial real estate. However…” May require purchase or user account. Link Verified October 11, 2014

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