Abstract
In this paper, the impact of institutional trading on stock market dynamics is analysed. We study the problem in an abstract context in which stocks of only one type are traded and institutions' portfolio choices are simply restricted to the partition of portfolio between stocks and bonds; in this simplified context it is shown how institutions' monitoring of individual investors' potentially destabilizing behavior (hearding and positive-feedback behavior) can be effective to obtain stock market stability.
Sommario
In questo articolo abbiamo analizzato la dinamica del mercato azionario in presenza di fondi di investimento. A tal fine, è stato proposto e studiato un modello dinamico che evidenzia alcuni nessi causali fra le scelte dei fondi e le scelte degli investitori non istituzionali.
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While remaining fully rsponsible for this paper, I thank Marcello Galeotti, Antonio Gay and Franco Gori for insightful comments and suggestions.
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Antoci, A. Stock market dynamics with institutional trading. Rivista di Matematica per le Scienze Economiche e Sociali 18, 143–151 (1995). https://doi.org/10.1007/BF02096424
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DOI: https://doi.org/10.1007/BF02096424