Annals of Operations Research

, Volume 37, Issue 1, pp 101–123 | Cite as

The dynamics of speculative behaviour

  • Carl Chiarella

Abstract

A number of recent empirical studies cast some doubt on the random walk theory of asset prices and suggest these display significant transitory components and complex chaotic motion. This paper analyses a model of fundamentalists and chartists which can generate a number of dynamic regimes which are compatible with the recent empirical evidence.

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Copyright information

© J.C. Baltzer AG, Scientific Publishing Company 1992

Authors and Affiliations

  • Carl Chiarella
    • 1
  1. 1.School of Finance and EconomicsUniversity of Technology SydneySydneyAustralia

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