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Taming the Bias Zoo / Hongqi Liu, Cameron Peng, Wei A. Xiong, Wei Xiong.
- Format:
- Book
- Author/Creator:
- Liu, Hongqi.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w26911.
- NBER working paper series no. w26911
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- Resolving the Excessive Trading Puzzle
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2020.
- Summary:
- The success of the behavioral economics literature has led to a new challenge--a large number of behavioral biases offering observationally similar predictions for a targeted anomaly in financial markets. To tame the bias zoo, we propose a new approach of combining subjective survey responses with observational data; this approach has the advantage of being robust to question-specific biases introduced through surveys. We illustrate this approach by administering a nationwide survey of Chinese retail investors to elicit their trading motives. In cross-sectional regressions of respondents' actual turnover on survey-based measures of trading motives, perceived information advantage and gambling preference dominate other motives, even though they are not the most prevalent biases simply based on survey responses.
- Notes:
- Print version record
- March 2020.
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