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Imperfect Information and Investor Heterogeneity in the Bond Market

  • Frank Riedel

Part of the Contributions to Economics book series (CE)

Table of contents

About this book

Introduction

Real world investors differ in their tastes and attitudes and they do not have, in general, perfect information about the future prospects of the economy. Most theoretical models, however, assume to the contrary that investors are homogeneous and perfectly informed about the market. In this book, an attempt is made to overcome these shortcomings. In three different case studies, the effect of heterogeneous time preferences, heterogeneous beliefs and imperfect information about the economy's growth on the term structure of interest rates are studied. The initial chapter gives an introduction to the theory of financial markets in continuous time under imperfect information and establishes the existence of an equilibrium with complete markets.

Keywords

Bond Market Bonds Financial Economics Finanzierungstheorie Imperfect Information Kapitalmarkttheorie Rentenmarkt Termin Structure of Interest Rates Unvollständige Information Zinsstruktur calculus modeling

Authors and affiliations

  • Frank Riedel
    • 1
  1. 1.Department of Economics, Institute of Economic TheoryHumboldt UniversityBerlinGermany

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-642-57663-8
  • Copyright Information Physica-Verlag Heidelberg 2000
  • Publisher Name Physica, Heidelberg
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-7908-1247-3
  • Online ISBN 978-3-642-57663-8
  • Series Print ISSN 1431-1933
  • Buy this book on publisher's site