NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Learning in Financial Markets

Lubos Pastor, Pietro Veronesi

NBER Working Paper No. 14646
Issued in January 2009
NBER Program(s):   AP      CF

We survey the recent literature on learning in financial markets. Our main theme is that many financial market phenomena that appear puzzling at first sight are easier to understand once we recognize that parameters in financial models are uncertain and subject to learning. We discuss phenomena related to the volatility and predictability of asset returns, stock price bubbles, portfolio choice, mutual fund flows, trading volume, and firm profitability, among others.

download in pdf format
   (201 K)

email paper

This paper is available as PDF (201 K) or via email.

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w14646

Published: Lubos Pastor & Pietro Veronesi, 2009. "Learning in Financial Markets," Annual Review of Financial Economics, Annual Reviews, vol. 1(1), pages 361-381, November.

Users who downloaded this paper also downloaded these:
Pastor and Veronesi w11876 Technological Revolutions and Stock Prices
Pastor and Stambaugh w14757 Are Stocks Really Less Volatile in the Long Run?
Pastor and Veronesi w16128 Uncertainty about Government Policy and Stock Prices
Pastor and Veronesi w8991 Stock Valuation and Learning about Profitability
Demirguc-Kunt and Levine w15275 Finance and Inequality: Theory and Evidence
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us