|Title:||2013 Nobel Laureates in Economic Sciences: Demystifying Empirics of Asset Prices?|
|Group/Series/Folder:||Record Group 8.15 - Institute for Advanced Study|
Series 3 - Audio-visual Materials
|Notes:||Business School and IAS joint panel discussion.|
Title from opening screen.
Abstract: The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2013 was awarded jointly to Eugene F. Fama, Lars Peter Hansen and Robert J. Shiller 'for their empirical analysis of asset prices'. Prof Pengfei Wang from the Department of Economics, Prof Jialin Yu and Prof Chu Zhang from the Department of Finance will share with the audience on the work of the Nobel Laureates. Prof Kalok Chan, Acting Dean of the Business School, will be the moderator.
One approach interprets these findings in terms of the response by rational investors to uncertainty in prices. High future returns are then viewed as compensation for holding risky assets during unusually risky times. Lars Peter Hansen developed a statistical method that is particularly well suited to testing rational theories of asset pricing. Using this method, Hansen and other researchers have found that modifications of these theories go a long way toward explaining asset prices.
Another approach focuses on departures from rational investor behavior. So-called behavioral finance takes into account institutional restrictions, such as borrowing limits, which prevent smart investors from trading against any mispricing in the market.
The Laureates have laid the foundation for the current understanding of asset prices. It relies in part on fluctuations in risk and risk attitudes, and in part on behavioral biases and market frictions.”
Duration: 80 min.
|Appears in Series:||8.15:3 - Audio-visual Materials|
Videos for Public -- Distinguished Lectures