1 / 28

Foreign Country

( λ + ω ) investors receive information about Asset 1 ( λ - ω ) investors receive information about Asset 2. ( λ - ω ) investors receive information about Asset 1 ( λ + ω ) investors receive information about Asset 2. λ =0.5, ω =0. Home Country. Foreign Country. Asset 2.

rune
Download Presentation

Foreign Country

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. (λ+ω) investorsreceive information about Asset 1 (λ-ω) investorsreceive information about Asset 2 (λ-ω) investorsreceive information about Asset 1 (λ+ω) investorsreceive information about Asset 2 λ=0.5, ω=0 Home Country Foreign Country Asset 2 Asset 1 1 0

  2. (λ+ω) investorsreceive information about Asset 1 (λ-ω) investorsreceive information about Asset 2 (λ-ω) investorsreceive information about Asset 1 (λ+ω) investorsreceive information about Asset 2 λ=0.5, ω=0.05 Home Country Foreign Country Asset 2 Asset 1 1 0

  3. (λ+ω) investorsreceive information about Asset 1 (λ-ω) investorsreceive information about Asset 2 (λ-ω) investorsreceive information about Asset 1 (λ+ω) investorsreceive information about Asset 2 λ=0.5, ω=0.10 Home Country Foreign Country Asset 2 Asset 1 1 0

  4. (λ+ω) investorsreceive information about Asset 1 (λ-ω) investorsreceive information about Asset 2 (λ-ω) investorsreceive information about Asset 1 (λ+ω) investorsreceive information about Asset 2 λ=0.5, ω=0.15 Home Country Foreign Country Asset 2 Asset 1 1 0

  5. (λ+ω) investorsreceive information about Asset 1 (λ-ω) investorsreceive information about Asset 2 (λ-ω) investorsreceive information about Asset 1 (λ+ω) investorsreceive information about Asset 2 λ=0.5, ω=0.20 Home Country Foreign Country Asset 2 Asset 1 1 0

  6. (λ+ω) investorsreceive information about Asset 1 (λ-ω) investorsreceive information about Asset 2 (λ-ω) investorsreceive information about Asset 1 (λ+ω) investorsreceive information about Asset 2 λ=0.5, ω=0.25 Home Country Foreign Country Asset 2 Asset 1 1 0

  7. (λ+ω) investorsreceive information about Asset 1 (λ-ω) investorsreceive information about Asset 2 (λ-ω) investorsreceive information about Asset 1 (λ+ω) investorsreceive information about Asset 2 λ=0.5, ω=0.25 Home Country Foreign Country Asset 2 Asset 1 1 0 GrossmanStiglitz (1980), Hellwig (1980), Admati (1985): postulateequilibriumprice as a linearfunction of the averagesignals and the aggregate stock supply, find the optimal demands and impose market clearing to solve for the undetermined coefficients.

  8. Privatesignals Normalizedprice signal

  9. GrossmanStiglitz (1980), Hellwig (1980), Admati (1985): postulateequilibriumprice as a linearfunction of the averagesignals and the aggregate stock supply, find the optimal demands and impose market clearing to solve for the undetermined coefficients.

More Related