ASSET PRICING AND FINANCIAL MARKETS: A COMPARISON BETWEEN CONVENTIONAL THEORY OF FINANCE, POST KEYNESIAN THEORY AND BEHAVIORAL FINANCE
Autor(a) principal: | |
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Data de Publicação: | 2016 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | por |
Título da fonte: | Análise Econômica (Online) |
Texto Completo: | https://seer.ufrgs.br/index.php/AnaliseEconomica/article/view/49994 |
Resumo: | This paper aims, in its beginning, to present in a very short way how three schools of economic thought visualize financial markets and asset pricing. Next, the paper discusses the main differences between these schools, as well as its convergence points. We argue that many of the discordances in the perception of the role and the efficiency of financial markets are consequences of three basic questions: what is the main objective of economic agents in financial markets, how rational are their choices, and how important is the uncertainty in comparison with risk. Additionally, there are important differences about the questions proposed by each theory, which makes sometimes the object studied by each school diverse. We aim then, to evaluate the specific objectives of the three theories, as well as the impact of the realism of assumptions over the capacity to reach concrete results by each school. It is possible to verify that conventional finance, especially considering portfolio decision models, has considerable practical application, mainly for portfolio managers and investors. Post Keynesian theory, on the other hand, emphasizes the importance of psychological and behavioral issues on market operations, especially on speculative procedures. In this sense, Post Keynesian theory, together with behavioral finance theory, is more adherent to economic reality. However, because these assumptions create great complexity, the aptitude to deliver objective results departing from Post Keynesian models is considerable limited. |
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ASSET PRICING AND FINANCIAL MARKETS: A COMPARISON BETWEEN CONVENTIONAL THEORY OF FINANCE, POST KEYNESIAN THEORY AND BEHAVIORAL FINANCEPRECIFICAÇÃO DE ATIVOS E MERCADOS FINANCEIROS: UM COMPARATIVO ENTRE A TEORIA CONVENCIONAL DAS FINANÇAS, TEORIA PÓS-KEYNESIANA E BEHAVIORAL FINANCEFinancial marketsAsset pricingPost-Keynesian economicsBehavioral financeB50G01G02G11Mercado financeiroPrecificação de ativosTeoria pós-keynesianaFinanças comportamentaisB50G01G02G11This paper aims, in its beginning, to present in a very short way how three schools of economic thought visualize financial markets and asset pricing. Next, the paper discusses the main differences between these schools, as well as its convergence points. We argue that many of the discordances in the perception of the role and the efficiency of financial markets are consequences of three basic questions: what is the main objective of economic agents in financial markets, how rational are their choices, and how important is the uncertainty in comparison with risk. Additionally, there are important differences about the questions proposed by each theory, which makes sometimes the object studied by each school diverse. We aim then, to evaluate the specific objectives of the three theories, as well as the impact of the realism of assumptions over the capacity to reach concrete results by each school. It is possible to verify that conventional finance, especially considering portfolio decision models, has considerable practical application, mainly for portfolio managers and investors. Post Keynesian theory, on the other hand, emphasizes the importance of psychological and behavioral issues on market operations, especially on speculative procedures. In this sense, Post Keynesian theory, together with behavioral finance theory, is more adherent to economic reality. However, because these assumptions create great complexity, the aptitude to deliver objective results departing from Post Keynesian models is considerable limited.O presente trabalho tem o objetivo inicial de apresentar resumidamente como três correntes da teoria econômica visualizam os mercados financeiros e a precificação de ativos. Em seguida, o artigo discute as principais diferenças entre essas correntes, bem como alguns de seus pontos de convergência. Argumenta-se que muitas das discordâncias nas percepções do papel e da eficiência dos mercados financeiros ocorrem em função de três questões básicas: qual o principal objetivo dos agentes no mercado financeiro, qual o grau de racionalidade do seu comportamento e qual a importância da incerteza frente ao risco. Além disso, existem diferenças importantes em relação às questões que cada teoria se propõe a responder, tornando o objeto de estudo dessas correntes por vezes distinto. Procura-se, então, avaliar quais são os objetivos específicos dessas três correntes, bem como o impacto do realismo das hipóteses consideradas por cada linha teórica sobre a obtenção de resultados concretos. Observa-se que a teoria convencional das finanças, no que se refere aos modelos de avaliação de portfolios, tem grande aplicação prática, especialmente para os gestores de fundos de investimentos e carteiras de ativos. A teoria pós-keynesiana, por outro lado, enfatiza a relevância dos fatores psicológicos e comportamentais dos agentes nas operações do mercado, especialmente nas que envolvem elementos especulativos. Nesse sentido, a teoria pós-keynesiana, em conjunto com as finanças comportamentais, apresenta maior aderência com a realidade observada no funcionamento dos mercados financeiros. Não obstante, devido à complexidade gerada pelas hipóteses adotadas pelos pós-keynesianos, sua capacidade de entregar resultados objetivos obtidos a partir de modelos formais é bastante limitada. UFRGS2016-03-02info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfhttps://seer.ufrgs.br/index.php/AnaliseEconomica/article/view/4999410.22456/2176-5456.49994Análise Econômica; Vol. 34 No. 65 (2016): março de 2016Análise Econômica; v. 34 n. 65 (2016): março de 20162176-54560102-9924reponame:Análise Econômica (Online)instname:Universidade Federal do Rio Grande do Sul (UFRGS)instacron:UFRGSporhttps://seer.ufrgs.br/index.php/AnaliseEconomica/article/view/49994/36640Copyright (c) 2019 Análise Econômicainfo:eu-repo/semantics/openAccessSilva, Guilherme Ricardo dos Santos SouzaCurado, Marcelo Luiz2016-05-06T16:26:16Zoai:seer.ufrgs.br:article/49994Revistahttps://seer.ufrgs.br/index.php/AnaliseEconomicaPUBhttps://seer.ufrgs.br/index.php/AnaliseEconomica/oai||rae@ufrgs.br2176-54560102-9924opendoar:2016-05-06T16:26:16Análise Econômica (Online) - Universidade Federal do Rio Grande do Sul (UFRGS)false |
dc.title.none.fl_str_mv |
ASSET PRICING AND FINANCIAL MARKETS: A COMPARISON BETWEEN CONVENTIONAL THEORY OF FINANCE, POST KEYNESIAN THEORY AND BEHAVIORAL FINANCE PRECIFICAÇÃO DE ATIVOS E MERCADOS FINANCEIROS: UM COMPARATIVO ENTRE A TEORIA CONVENCIONAL DAS FINANÇAS, TEORIA PÓS-KEYNESIANA E BEHAVIORAL FINANCE |
title |
ASSET PRICING AND FINANCIAL MARKETS: A COMPARISON BETWEEN CONVENTIONAL THEORY OF FINANCE, POST KEYNESIAN THEORY AND BEHAVIORAL FINANCE |
spellingShingle |
ASSET PRICING AND FINANCIAL MARKETS: A COMPARISON BETWEEN CONVENTIONAL THEORY OF FINANCE, POST KEYNESIAN THEORY AND BEHAVIORAL FINANCE Silva, Guilherme Ricardo dos Santos Souza Financial markets Asset pricing Post-Keynesian economics Behavioral finance B50 G01 G02 G11 Mercado financeiro Precificação de ativos Teoria pós-keynesiana Finanças comportamentais B50 G01 G02 G11 |
title_short |
ASSET PRICING AND FINANCIAL MARKETS: A COMPARISON BETWEEN CONVENTIONAL THEORY OF FINANCE, POST KEYNESIAN THEORY AND BEHAVIORAL FINANCE |
title_full |
ASSET PRICING AND FINANCIAL MARKETS: A COMPARISON BETWEEN CONVENTIONAL THEORY OF FINANCE, POST KEYNESIAN THEORY AND BEHAVIORAL FINANCE |
title_fullStr |
ASSET PRICING AND FINANCIAL MARKETS: A COMPARISON BETWEEN CONVENTIONAL THEORY OF FINANCE, POST KEYNESIAN THEORY AND BEHAVIORAL FINANCE |
title_full_unstemmed |
ASSET PRICING AND FINANCIAL MARKETS: A COMPARISON BETWEEN CONVENTIONAL THEORY OF FINANCE, POST KEYNESIAN THEORY AND BEHAVIORAL FINANCE |
title_sort |
ASSET PRICING AND FINANCIAL MARKETS: A COMPARISON BETWEEN CONVENTIONAL THEORY OF FINANCE, POST KEYNESIAN THEORY AND BEHAVIORAL FINANCE |
author |
Silva, Guilherme Ricardo dos Santos Souza |
author_facet |
Silva, Guilherme Ricardo dos Santos Souza Curado, Marcelo Luiz |
author_role |
author |
author2 |
Curado, Marcelo Luiz |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Silva, Guilherme Ricardo dos Santos Souza Curado, Marcelo Luiz |
dc.subject.por.fl_str_mv |
Financial markets Asset pricing Post-Keynesian economics Behavioral finance B50 G01 G02 G11 Mercado financeiro Precificação de ativos Teoria pós-keynesiana Finanças comportamentais B50 G01 G02 G11 |
topic |
Financial markets Asset pricing Post-Keynesian economics Behavioral finance B50 G01 G02 G11 Mercado financeiro Precificação de ativos Teoria pós-keynesiana Finanças comportamentais B50 G01 G02 G11 |
description |
This paper aims, in its beginning, to present in a very short way how three schools of economic thought visualize financial markets and asset pricing. Next, the paper discusses the main differences between these schools, as well as its convergence points. We argue that many of the discordances in the perception of the role and the efficiency of financial markets are consequences of three basic questions: what is the main objective of economic agents in financial markets, how rational are their choices, and how important is the uncertainty in comparison with risk. Additionally, there are important differences about the questions proposed by each theory, which makes sometimes the object studied by each school diverse. We aim then, to evaluate the specific objectives of the three theories, as well as the impact of the realism of assumptions over the capacity to reach concrete results by each school. It is possible to verify that conventional finance, especially considering portfolio decision models, has considerable practical application, mainly for portfolio managers and investors. Post Keynesian theory, on the other hand, emphasizes the importance of psychological and behavioral issues on market operations, especially on speculative procedures. In this sense, Post Keynesian theory, together with behavioral finance theory, is more adherent to economic reality. However, because these assumptions create great complexity, the aptitude to deliver objective results departing from Post Keynesian models is considerable limited. |
publishDate |
2016 |
dc.date.none.fl_str_mv |
2016-03-02 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://seer.ufrgs.br/index.php/AnaliseEconomica/article/view/49994 10.22456/2176-5456.49994 |
url |
https://seer.ufrgs.br/index.php/AnaliseEconomica/article/view/49994 |
identifier_str_mv |
10.22456/2176-5456.49994 |
dc.language.iso.fl_str_mv |
por |
language |
por |
dc.relation.none.fl_str_mv |
https://seer.ufrgs.br/index.php/AnaliseEconomica/article/view/49994/36640 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2019 Análise Econômica info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2019 Análise Econômica |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
UFRGS |
publisher.none.fl_str_mv |
UFRGS |
dc.source.none.fl_str_mv |
Análise Econômica; Vol. 34 No. 65 (2016): março de 2016 Análise Econômica; v. 34 n. 65 (2016): março de 2016 2176-5456 0102-9924 reponame:Análise Econômica (Online) instname:Universidade Federal do Rio Grande do Sul (UFRGS) instacron:UFRGS |
instname_str |
Universidade Federal do Rio Grande do Sul (UFRGS) |
instacron_str |
UFRGS |
institution |
UFRGS |
reponame_str |
Análise Econômica (Online) |
collection |
Análise Econômica (Online) |
repository.name.fl_str_mv |
Análise Econômica (Online) - Universidade Federal do Rio Grande do Sul (UFRGS) |
repository.mail.fl_str_mv |
||rae@ufrgs.br |
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1799766267518779392 |