On asset prices and leverage requirements : an experimental analysis

Gehrig, Thomas P.; Levínský, René

Home
→
Recerca: working papers, preprints, informes, etc.
→
Barcelona School of Economics
→
ADEMU Working Papers Series
→
View Item

dc.contributor.author	Gehrig, Thomas P.
dc.contributor.author	Levínský, René
dc.date.accessioned	2018-09-18T14:45:12Z
dc.date.available	2018-09-18T14:45:12Z
dc.date.issued	2018-04
dc.identifier.uri	http://hdl.handle.net/10230/35459
dc.description.abstract	The present study contributes to the ongoing debate on possible costs and benefis of leverage requirements. In particular, we run two series of electronic call auctions with heterogeneous agents in the laboratory where we change the leverage bounds as a treatment variable. Over the two treatments, participants in our experiment realise about forty percent of the possible gains from trade. We show, in accordance the theory, leverage bounds do affect the efficiency of the market and the price of the asset.
dc.description.sponsorship	The ADEMU Working Paper Series is being supported by the European Commission Horizon 2020 European Union funding for Research & Innovation, grant agreement No 649396.
dc.format.mimetype	application/pdf
dc.language.iso	eng
dc.relation.ispartofseries	ADEMU Working Paper Series;100
dc.rights	This is an Open Access article distributed under the terms of the Creative Commons Attribution License Creative Commons Attribution 4.0 International, which permits unrestricted use, distribution and reproduction in any medium provided that the original work is properlyattributed.
dc.rights.uri	https://creativecommons.org/licenses/by/4.0/
dc.subject.other	Leverage bounds
dc.subject.other	Asset pricing
dc.subject.other	Behavioural finance
dc.title	On asset prices and leverage requirements : an experimental analysis
dc.type	info:eu-repo/semantics/workingPaper
dc.relation.projectID	info:eu-repo/grantAgreement/EC/H2020/649396
dc.rights.accessRights	info:eu-repo/semantics/openAccess