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A Fast and Frugal Finance

A Fast and Frugal Finance
Bridging Contemporary Behavioral Finance and Ecological Rationality

by William P. Forbes,Aloysius Obinna Igboekwu,Shabnam Mousavi

  • Publisher : Academic Press
  • Release : 2019-12-02
  • Pages : 276
  • ISBN : 0128124962
  • Language : En, Es, Fr & De
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A Fast and Frugal Finance: Bridging Contemporary Behavioural Finance and Ecological Rationality adds psychological reality to classical financial reasoning. It shows how financial professionals can reach better and quicker decisions using the ‘fast and frugal’ framework for decision-making, adding dramatically to time and outcome efficiency, while also retaining accuracy. The book provides the reader with an adaptive toolbox of heuristic tools and classification systems to aid real-world decisions. Throughout, financial applications are presented alongside real-world examples to help readers solve established problems in finance, including stock buying and selling decisions, when faced with not only risk but fundamental uncertainty. The book concludes by describing potential solutions to financial problems in the forefront of contemporary debates, and calls for taking psychological insights seriously. Demonstrates how well-constructed ‘fast and frugal’ models can outperform standard models in time and outcome efficiency Focuses on how financial decisions are made in reality, using heuristics, rather than how such decisions should be made Discusses how cognition and the decision-making context interact in producing ‘fast and frugal’ choices that follow ecological rationality Explores the development of decision-making trees in finance to aid in decision-making

Fast and Frugal Decision Making

Fast and Frugal Decision Making
Rethinking Behavioral Economics and Finance

by Shabnam Mousavi

  • Publisher : Palgrave Macmillan
  • Release : 2021
  • Pages : 240
  • ISBN : 9781137570789
  • Language : En, Es, Fr & De
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We all want more information in order to make better decisions and calculate risk, but oftentimes that information is scarce. This new strategy, based on extensive cognitive and economic research, shows how to make financial decisions through a 'fast and frugal' method.

Behavioral Finance

Behavioral Finance
Investors, Corporations, and Markets

by H. Kent Baker,John R. Nofsinger

  • Publisher : John Wiley & Sons
  • Release : 2010-10-01
  • Pages : 768
  • ISBN : 9780470769683
  • Language : En, Es, Fr & De
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A definitive guide to the growing field of behavioral finance This reliable resource provides a comprehensive view of behavioral finance and its psychological foundations, as well as its applications to finance. Comprising contributed chapters written by distinguished authors from some of the most influential firms and universities in the world, Behavioral Finance provides a synthesis of the most essential elements of this discipline, including psychological concepts and behavioral biases, the behavioral aspects of asset pricing, asset allocation, and market prices, as well as investor behavior, corporate managerial behavior, and social influences. Uses a structured approach to put behavioral finance in perspective Relies on recent research findings to provide guidance through the maze of theories and concepts Discusses the impact of sub-optimal financial decisions on the efficiency of capital markets, personal wealth, and the performance of corporations Behavioral finance has quickly become part of mainstream finance. If you need to gain a better understanding of this topic, look no further than this book.

Investor Decision-Making and the Role of the Financial Advisor

Investor Decision-Making and the Role of the Financial Advisor
A Behavioural Finance Approach

by Caterina Cruciani

  • Publisher : Springer
  • Release : 2017-11-13
  • Pages : 161
  • ISBN : 3319682342
  • Language : En, Es, Fr & De
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This book looks at financial advisory from a behavioural perspective, and focuses on how the nature of the relationship between advisors and clients may affect the ability of the advisor to perform its functions. Broken into three key parts, the book looks at the client, the advisor, and the relationship between the two. Chapters review relevant theories of decision-making under risk to understand the nature of clients’ decisions. The literature on advisors’ functions and the normative landscape regulating financial advisory are also addressed. Finally, this book reviews how behavioural finance has traditionally addressed portfolio selection and explains how trust can be seen as a viable avenue to maximize advisors’ effectiveness and pursue clients’ needs. This book will be of interest to both behavioural finance scholars and practitioners interested in understanding what the future of financial advisory may have in stock.

The Global Financial Crisis and Its Aftermath

The Global Financial Crisis and Its Aftermath
Hidden Factors in the Meltdown

by A.G. Malliaris,Leslie Shaw,Hersh Shefrin

  • Publisher : Oxford University Press
  • Release : 2016-09-06
  • Pages : 400
  • ISBN : 0199386242
  • Language : En, Es, Fr & De
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In The Global Financial Crisis, contributors argue that the complexity of the Global Financial Crisis challenges researchers to offer more comprehensive explanations by extending the scope and range of their traditional investigations. To achieve this, the volume views the financial crisis simultaneously through three different lenses---economic, psychological, and social values. Contributors offer a constructive methodology suitable for exploring financial crises. They recognize how current economic analysis did not prepare academic economists, business economists, traders, and regulators to anticipate economic and financial crises. So, they search more extensively within the broader discipline of economics for ideas related to crises but neglected perhaps because they were not mathematically rigorous. They affirm that the complexity of financial crises necessitates complementary research. Thus, to put the focal purpose of this book differently, they explore the Global Financial Crisis from three interconnected frameworks: the standards of orthodox economic analysis, Minskyan economics, and the role of ideas and values in economics. Values are the subject of both philosophy and psychology and can contribute to a better understanding of the Global Financial Crisis. Values, in general, have been relatively neglected by economists. This is not because there is doubt about their significance, but rather because welfare economics and collective choice still operate within the neoclassical paradigm. This volume argues that analyzing the value implications requires moving from the neoclassical framework to something that is broader and multidisciplinary.

Classification in the Wild

Classification in the Wild
The Art and Science of Transparent Decision Making

by Ozgur Simsek,Konstantinos Katsikopoulos,Marcus Buckmann,Gerd Gigerenzer

  • Publisher : Unknown Publisher
  • Release : 2021-02-02
  • Pages : 200
  • ISBN : 026204515X
  • Language : En, Es, Fr & De
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"A "bounded rationality" approach to understanding how people classify entities in real world situations, with imperfect information and limited time"--

Financial Education and Risk Literacy

Financial Education and Risk Literacy
A Book

by Riccardo Viale,Umberto Filotto,Barbara Alemanni,Shabnam Mousavi

  • Publisher : Edward Elgar Publishing
  • Release : 2021-01-29
  • Pages : 328
  • ISBN : 178990885X
  • Language : En, Es, Fr & De
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This innovative book explores how the design of financial education programmes could benefit from the findings of behavioural economics and finance and cognitive sciences. It covers the social, cultural and technological determinants of financial education, the role of the banking system in promoting financial literacy, and how governments and regulatory authorities are dealing with financial education and risk literacy programmes in schools.

The Behavioural Finance Revolution

The Behavioural Finance Revolution
A New Approach to Financial Policies and Regulations

by Riccardo Viale,Shabnam Mousavi,Barbara Alemanni,Umberto Filotto

  • Publisher : Edward Elgar Publishing
  • Release : 2021
  • Pages : 272
  • ISBN : 1788973062
  • Language : En, Es, Fr & De
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Financial markets are complex. Regulators strive to predict ways in which they can malfunction and create rules to prevent this from happening, yet behavioural impacts are often overlooked. This book explores how behavioural finance can go hand-in-hand with traditional methods to help banks and regulators create better policies. It also demonstrates how the behavioural finance revolution has opened the way to a more integrated approach to the analysis of economic phenomena.

Smart Economic Decision-Making in a Complex World

Smart Economic Decision-Making in a Complex World
A Book

by Morris Altman

  • Publisher : Academic Press
  • Release : 2020-06-05
  • Pages : 302
  • ISBN : 0128131780
  • Language : En, Es, Fr & De
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Smart Economic Decision-Making in a Complex World is a fresh and reality-based perspective on decision-making with significant implications for analysis, self-understanding and policy. The book examines the conditions under which smart people generate outcomes that improve their place of work, their household and society. Within this work, the curious reader will find interesting open questions on many fascinating areas of current economic debate, including, the role of realistic assumptions robust model building, understanding how and when non-neoclassical behavior is best practice, why the assumption of smart decision-makers is best to understand and explain our economies and societies, and under what conditions individuals can make the best possible choices for themselves and society at large. Additional sections cover when and how efficiency is achieved, why inefficiencies can persist, when and how consumer welfare is maximized, and what benchmarks should be used to determine efficiency and rationality. Makes the case for ‘smart and rational’ decision-making as a context-dependent rational process that is framed by socio-cultural environment and conditioned by institutional capacities Explains how incorporation of the ‘smart’ decision-maker concept into economic thought improves our understanding of how, why and when people generate certain outcomes Explores how economic efficiency can be achieved, individual preferences realized, and social welfare maximized through the use of ‘smart and rational’ approaches

Behavioral Finance: Psychology, Decision-Making, and Markets

Behavioral Finance: Psychology, Decision-Making, and Markets
A Book

by Lucy Ackert,Richard Deaves

  • Publisher : Cengage Learning
  • Release : 2009-09-23
  • Pages : 432
  • ISBN : 1111781672
  • Language : En, Es, Fr & De
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Now you can offer your students a structured, applied approach to behavioral finance with the first academic text of its kind--Ackert/Deaves' BEHAVIORAL FINANCE: PSYCHOLOGY, DECISION MAKING, AND MARKETS. This comprehensive text--ideal for your behavioral finance elective-- links finance theory and practice to human behavior. The book begins by building upon the established, conventional principles of finance that students have already learned in their principles course. The authors then move into psychological principles of behavioral finance, including heuristics and biases, overconfidence, emotion and social forces. Students learn how human behavior influences the decisions of individual investors and professional finance practitioners, managers, and markets. Your students gain a strong understanding of how social forces impact people's choices. The book clearly explains what behavioral finance indicates about observed market outcomes as well as how psychological biases potentially impact the behavior of managers. Students learn the implications of behavioral finance on retirement, pensions, education, debiasing, and client management. This book is unique as it spends a significant amount of time examining how behavioral finance can be used effectively by practitioners today. The book's solid academic approach provides opportunities for students to utilize theory and complete applications in every chapter. A wide variety of end-of-chapter exercises, discussion questions, simulations and experiments reinforce the book's applied approach, while useful instructor supplements ensure you have the resources to clearly present theories of behavioral finance and their applications. Important Notice: Media content referenced within the product description or the product text may not be available in the ebook version.

Natural Computing in Computational Finance

Natural Computing in Computational Finance
A Book

by Anthony Brabazon,Michael O'Neill,Dietmar Maringer

  • Publisher : Springer Science & Business Media
  • Release : 2011-09-10
  • Pages : 202
  • ISBN : 364223335X
  • Language : En, Es, Fr & De
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This book follows on from Natural Computing in Computational Finance Volumes I, II and III. As in the previous volumes of this series, the book consists of a series of chapters each of which was selected following a rigorous, peer-reviewed, selection process. The chapters illustrate the application of a range of cutting-edge natural computing and agent-based methodologies in computational finance and economics. The applications explored include option model calibration, financial trend reversal detection, enhanced indexation, algorithmic trading, corporate payout determination and agent-based modeling of liquidity costs, and trade strategy adaptation. While describing cutting edge applications, the chapters are written so that they are accessible to a wide audience. Hence, they should be of interest to academics, students and practitioners in the fields of computational finance and economics. which was selected following a rigorous, peer-reviewed, selection process. The chapters illustrate the application of a range of cutting-edge natural computing and agent-based methodologies in computational finance and economics. The applications explored include option model calibration, financial trend reversal detection, enhanced indexation, algorithmic trading, corporate payout determination and agent-based modeling of liquidity costs, and trade strategy adaptation. While describing cutting edge applications, the chapters are written so that they are accessible to a wide audience. Hence, they should be of interest to academics, students and practitioners in the fields of computational finance and economics. The applications explored include option model calibration, financial trend reversal detection, enhanced indexation, algorithmic trading, corporate payout determination and agent-based modeling of liquidity costs, and trade strategy adaptation. While describing cutting edge applications, the chapters are written so that they are accessible to a wide audience. Hence, they should be of interest to academics, students and practitioners in the fields of computational finance and economics. written so that they are accessible to a wide audience. Hence, they should be of interest to academics, students and practitioners in the fields of computational finance and economics.

Financial Inclusion

Financial Inclusion
Critique and Alternatives

by Rajiv Prabhakar

  • Publisher : Unknown Publisher
  • Release : 2021-02-17
  • Pages : 160
  • ISBN : 1447345460
  • Language : En, Es, Fr & De
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Rajiv Prabhakar brings together the typically exclusive views of supporters and critics to present a nuanced, critical analysis of 'financial inclusion'. Addressing issues including the 'poverty premium', financial capability and housing, this dialogue advances crucial public, academic and policy debates and proposes alternative paths forward.

Behavioural Economics and Finance

Behavioural Economics and Finance
A Book

by Michelle Baddeley

  • Publisher : Routledge
  • Release : 2018-10-17
  • Pages : 344
  • ISBN : 1351813986
  • Language : En, Es, Fr & De
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Behavioural economics and behavioural finance are rapidly expanding fields that are continually growing in prominence. While orthodox economic models are built upon restrictive and simplifying assumptions about rational choice and efficient markets, behavioural economics offers a robust alternative using insights and evidence that rest more easily with our understanding of how real people think, choose and decide. This insightful textbook introduces the key concepts from this rich, interdisciplinary approach to real-world decision-making. This new edition of Behavioural Economics and Finance is a thorough extension of the first edition, including updates to the key chapters on prospect theory; heuristics and bias; time and planning; sociality and identity; bad habits; personality, moods and emotions; behavioural macroeconomics; and well-being and happiness. It also includes a number of new chapters dedicated to the themes of incentives and motivations, behavioural public policy and emotional trading. Using pedagogical features such as chapter summaries and revision questions to enhance reader engagement, this text successfully blends economic theories with cutting-edge multidisciplinary insights. This second edition will be indispensable to anyone interested in how behavioural economics and finance can inform our understanding of consumers’ and businesses’ decisions and choices. It will appeal especially to undergraduate and graduate students but also to academic researchers, public policy-makers and anyone interested in deepening their understanding of how economics, psychology and sociology interact in driving our everyday decision-making.

The Oxford Handbook of Banking

The Oxford Handbook of Banking
A Book

by Allen N. Berger,Philip Molyneux,John O. S. Wilson

  • Publisher : Oxford University Press, USA
  • Release : 2019-10
  • Pages : 1312
  • ISBN : 0198824637
  • Language : En, Es, Fr & De
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The Oxford Handbook of Banking provides an overview and analysis of state-of-the-art research in banking written by leading researchers in the field. This Handbook will appeal to graduate students of economics, banking and finance, academics, practitioners and policy makers. Consequently, the book strikes a balance between abstract theory, empirical analysis, and practitioner and policy-related material. The handbook is split into five parts. Part I, The Theory of Banking, examines the role of banks in the wider financial system, why banks exist, how they function, and their legal and governance structures. Part II entitled Regulatory and Policy Perspectives discusses monetary policy, prudential regulation and supervision, and antitrust policy. Part III of the book deals with bank performance. A number of issues are assessed including efficiency, financial innovation and technological change, globalization and ability to deliver small business, consumer, and mortgage lending services. Part IV of the book provides an overview of macroeconomic perspectives in banking. This part of the book includes a discussion of the determinants of bank failures and crises, and the impact on financial stability, institutional development, and economic growth. Part V examines International Differences In Banking Structures And Environments. This part of the handbook examines banking systems in the United States, Western Europe, Transition countries, Latin America, Japan and the Developing nations of Asia.

Belief and Rule Compliance

Belief and Rule Compliance
An Experimental Comparison of Muslim and Non-Muslim Economic Behavior

by Hazik Mohamed,Abbas Mirakhor,Nuri Erbaş

  • Publisher : Academic Press
  • Release : 2018-09-20
  • Pages : 233
  • ISBN : 0128138130
  • Language : En, Es, Fr & De
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Belief and Rule Compliance: An Experimental Comparison of Muslim and Non-Muslim Economic Behavior uses modern behavioral science and game theory to examine the behavior and compliance of Muslim populations to Islamic Finance laws and norms. The work identifies behaviors characterized by unexpected complexity and profound divergence, including expectations for sharing, cooperation and entrepreneurship gleaned from studies. Adopting a unique set of recent empirical observations, the work provides a reliable behavioral foundation for practitioners seeking to evaluate, create and market Islamic financial products. Covers the economic behavior of Muslims and non-Muslims Indicates when, and if, economic behavior confirms/opposes rational self-interest assumptions Links rule compliance with risk sharing concepts in Islamic Finance Applies game theory to understand behavioral rules compliance regarding Islamic Finance laws Explores behavioral implications for creating and marketing new financial products

International Handbook of Financial Literacy

International Handbook of Financial Literacy
A Book

by Carmela Aprea,Eveline Wuttke,Klaus Breuer,Noi Keng Koh,Peter Davies,Bettina Greimel-Fuhrmann,Jane S. Lopus

  • Publisher : Springer
  • Release : 2016-03-24
  • Pages : 713
  • ISBN : 9811003602
  • Language : En, Es, Fr & De
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This Handbook presents in-depth research conducted on a myriad of issues within the field of financial literacy. Split into six sections, it starts by presenting prevalent conceptions of financial literacy before covering financial literacy in the policy context, the state and development of financial literacy within different countries, issues of assessment and evaluation of financial literacy, approaches to teaching financial literacy, and teacher training and teacher education in financial literacy. In doing so, it provides precise definitions of the construct of financial literacy and elaborates on the state and recent developments of financial literacy around the world, to show ways of measuring and fostering financial literacy and to give hints towards necessary and successful teacher trainings. The book also embraces the diversity in the field by revealing contrasting and conflicting views that cannot be bridged, while at the same time making a contribution by re-joining existing materials in one volume which can be used in academic discourse, in research-workshops, in university lectures and in the definition of program initiatives within the wider field of financial literacy. It allows for a landscape of financial literacy to be depicted which would foster the implementation of learning opportunities for human beings for sake of well-being within financial living-conditions. The Handbook is useful to academics and students of the topic, professionals in the sector of investment and banking, and for every person responsible for managing his or her financial affairs in everyday life.

Optimal Financial Decision Making under Uncertainty

Optimal Financial Decision Making under Uncertainty
A Book

by Giorgio Consigli,Daniel Kuhn,Paolo Brandimarte

  • Publisher : Springer
  • Release : 2016-10-17
  • Pages : 298
  • ISBN : 3319416138
  • Language : En, Es, Fr & De
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The scope of this volume is primarily to analyze from different methodological perspectives similar valuation and optimization problems arising in financial applications, aimed at facilitating a theoretical and computational integration between methods largely regarded as alternatives. Increasingly in recent years, financial management problems such as strategic asset allocation, asset-liability management, as well as asset pricing problems, have been presented in the literature adopting formulation and solution approaches rooted in stochastic programming, robust optimization, stochastic dynamic programming (including approximate SDP) methods, as well as policy rule optimization, heuristic approaches and others. The aim of the volume is to facilitate the comprehension of the modeling and methodological potentials of those methods, thus their common assumptions and peculiarities, relying on similar financial problems. The volume will address different valuation problems common in finance related to: asset pricing, optimal portfolio management, risk measurement, risk control and asset-liability management. The volume features chapters of theoretical and practical relevance clarifying recent advances in the associated applied field from different standpoints, relying on similar valuation problems and, as mentioned, facilitating a mutual and beneficial methodological and theoretical knowledge transfer. The distinctive aspects of the volume can be summarized as follows: Strong benchmarking philosophy, with contributors explicitly asked to underline current limits and desirable developments in their areas. Theoretical contributions, aimed at advancing the state-of-the-art in the given domain with a clear potential for applications The inclusion of an algorithmic-computational discussion of issues arising on similar valuation problems across different methods. Variety of applications: rarely is it possible within a single volume to consider and analyze different, and possibly competing, alternative optimization techniques applied to well-identified financial valuation problems. Clear definition of the current state-of-the-art in each methodological and applied area to facilitate future research directions.

The Oxford Handbook of the Sociology of Finance

The Oxford Handbook of the Sociology of Finance
A Book

by Karin Knorr Cetina,Alex Preda

  • Publisher : OUP Oxford
  • Release : 2012-11-29
  • Pages : 640
  • ISBN : 0191641340
  • Language : En, Es, Fr & De
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Recent years have seen a surge of interest in the workings of financial institutions and financial markets beyond the discipline of economics, which has been accelerated by the financial crisis of the early twenty-first century. The Oxford Handbook of the Sociology of Finance brings together twenty-nine chapters, written by scholars of international repute from Europe, North America, and Asia, to provide comprehensive coverage on a variety of topics related to the role of finance in a globalized world, and its historical development. Topics include global institutions of modern finance, types of actors involved in financial transactions and supporting technologies, mortgage markets, rating agencies, and the role of financial economics. Particular attention is given to financial crises, which are discussed in a special section, as well as to alternative forms of finance, including Islamic finance and the rise of China. The Handbook will be an indispensable tool for academics, researchers, and students of contemporary finance and economic sociology, and will serve as a reference point for the expanding international community of scholars researching these areas from a broadly-defined sociological perspective.

Psychological Perspectives on Financial Decision Making

Psychological Perspectives on Financial Decision Making
A Book

by Tomasz Zaleskiewicz,Jakub Traczyk

  • Publisher : Springer Nature
  • Release : 2020-07-21
  • Pages : 356
  • ISBN : 3030455009
  • Language : En, Es, Fr & De
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This book reviews the latest research from psychology, neuroscience, and behavioral economics evaluating how people make financial choices in real-life circumstances. The volume is divided into three sections investigating financial decision making at the level of the brain, the level of an individual decision maker, and the level of the society, concluding with a discussion of the implications for further research. Among the topics discussed: Neural and hormonal bases of financial decision making Personality, cognitive abilities, emotions, and financial decisions Aging and financial decision making Coping methods for making financial choices under uncertainty Stock market crashes and market bubbles Psychological perspectives on borrowing, paying taxes, gambling, and charitable giving Psychological Perspectives on Financial Decision Making is a useful reference for researchers both in and outside of psychology, including decision-making experts, consumer psychologists, and behavioral economists.

Strategic Analysis Of Financial Markets, The (In 2 Volumes)

Strategic Analysis Of Financial Markets, The (In 2 Volumes)
A Book

by Moffitt Steven D

  • Publisher : World Scientific Publishing Company
  • Release : 2017-03-24
  • Pages : 1120
  • ISBN : 9813143770
  • Language : En, Es, Fr & De
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Volume 1 of "The Strategic Analysis of Financial Markets," — Framework, is premised on the belief that markets can be understood only by dropping the assumptions of rationality and efficient markets in their extreme forms, and showing that markets still have an inherent order and inherent logic. But that order results primarily from the "predictable irrationality" of investors, as well as from people's uncoordinated attempts to profit. The market patterns that result do not rely on rationality or efficiency. A framework is developed for understanding financial markets using a combination of psychology, statistics, game and gambling analysis, market history and the author's experience. It expresses analytically how professional investors and traders think about markets — as games in which other participants employ inferior, partially predictable strategies. Those strategies' interactions can be toxic and lead to booms, bubbles, busts and crashes, or can be less dramatic, leading to various patterns that are mistakenly called "market inefficiencies" and "stylized facts." A logical case is constructed, starting from two foundations, the psychology of human decision making and the "Fundamental Laws of Gambling." Applying the Fundamental Laws to trading leads to the idea of "gambling rationality" (grationality), replacing the efficient market's concept of "rationality." By classifying things that are likely to have semi-predictable price impacts (price "distorters"), one can identify, explore through data analysis, and create winning trading ideas and systems. A structured way of doing all this is proposed: the six-step "Strategic Analysis of Market Method." Examples are given in this and Volume 2. Volume 2 of "The Strategic Analysis of Financial Markets" — Trading System Analytics, continues the development of Volume 1 by introducing tools and techniques for developing trading systems and by illustrating them using real markets. The difference between these two Volumes and the rest of the literature is its rigor. It describes trading as a form of gambling that when properly executed, is quite logical, and is well known to professional gamblers and analytical traders. But even those elites might be surprised at the extent to which quantitative methods have been justified and applied, including a life cycle theory of trading systems. Apart from a few sections that develop background material, Volume 2 creates from scratch a trading system for Eurodollar futures using principles of the Strategic Analysis of Markets Method (SAMM), a principled, step-by-step approach to developing profitable trading systems. It has an entire Chapter on mechanical methods for testing and improvement of trading systems, which transcends the rather unstructured and unsatisfactory "backtesting" literature. It presents a breakout trend following system developed using factor models. It also presents a specific pairs trading system, and discusses its life cycle from an early, highly profitable period to its eventual demise. Recent developments in momentum trading and suggestions on improvements are also discussed.