For best experience please turn on javascript and use a modern browser!
You are using a browser that is no longer supported by Microsoft. Please upgrade your browser. The site may not present itself correctly if you continue browsing.
This research project funded by the Institute of New Economic Thinking (INET) aims to develop a behavioral paradigm of heterogeneous expectations that can help explain the sources of financial and macroeconomic instability and find possible policy remedies.
The main goal of the project is to build a financial‐macroeconomic model of
heterogeneous expectations and to test it using extensive laboratory experiments
with human subjects and then fit the model to empirical data. In particular, the
project aims to understand whether introducing more financial derivatives can
stabilize or destabilize markets, and how the interaction between heterogeneous
expectations by different groups of agents (real-estate developers, home buyers,
and speculative investors) affects price dynamics in the housing market. The
research results of this project may give insights for early detection of crises
and designing policies that prevent macroeconomic instability and avoid crises.
Cookie Consent
The UvA uses cookies to ensure the basic functionality of the site and for statistical and optimisation purposes. Cookies are also placed to display third-party content and for marketing purposes. Click 'Accept all cookies' to consent to the placement of all cookies, or choose 'Decline' to only accept functional and analytical cookies. Also read the UvA Privacy statement.