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Behavioral Finance Meets Experimental Macroeconomics: On the Determinants of Currency Trade Decisions.

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Title: Behavioral Finance Meets Experimental Macroeconomics: On the Determinants of Currency Trade Decisions.
Authors: Kaiser, Johannes (AUTHOR), Kube, Sebastian (AUTHOR)
Source: Journal of Behavioral Finance. 2009, Vol. 10 Issue 1, p44-54. 11p. 2 Black and White Photographs, 3 Charts, 3 Graphs.
Subjects: Macroeconomics, Finance, Business, Interest rates, Foreign exchange rates, Financial institutions, Communication in financial institutions
Abstract: A novel approach which conjoins elements of experimental macroeconomics and behavioral finance allows us to study the components of industrial firms' currency trade decisions in the controlled environment of a laboratory. We analyze how firms operate in the currency market in a deterministic two-country model with two currencies. Consistent with presumptions of real-world behavior, subjects in our experiment tend to base their trade decisions on definite rather than on uncertain key data: Interest rates have a high impact, while technical analysis plays a minor role. We finally demonstrate how a simple decision rule that incorporates our findings might outperform the actually observed trade decisions. [ABSTRACT FROM AUTHOR]
Copyright of Journal of Behavioral Finance is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Database: Psychology and Behavioral Sciences Collection
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  Label: Title
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  Data: Behavioral Finance Meets Experimental Macroeconomics: On the Determinants of Currency Trade Decisions.
– Name: Author
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  Data: <searchLink fieldCode="AR" term="%22Kaiser%2C+Johannes%22">Kaiser, Johannes</searchLink> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22Kube%2C+Sebastian%22">Kube, Sebastian</searchLink> (AUTHOR)
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  Data: <searchLink fieldCode="JN" term="%22Journal+of+Behavioral+Finance%22">Journal of Behavioral Finance</searchLink>. 2009, Vol. 10 Issue 1, p44-54. 11p. 2 Black and White Photographs, 3 Charts, 3 Graphs.
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  Data: <searchLink fieldCode="DE" term="%22Macroeconomics%22">Macroeconomics</searchLink><br /><searchLink fieldCode="DE" term="%22Finance%22">Finance</searchLink><br /><searchLink fieldCode="DE" term="%22Business%22">Business</searchLink><br /><searchLink fieldCode="DE" term="%22Interest+rates%22">Interest rates</searchLink><br /><searchLink fieldCode="DE" term="%22Foreign+exchange+rates%22">Foreign exchange rates</searchLink><br /><searchLink fieldCode="DE" term="%22Financial+institutions%22">Financial institutions</searchLink><br /><searchLink fieldCode="DE" term="%22Communication+in+financial+institutions%22">Communication in financial institutions</searchLink>
– Name: Abstract
  Label: Abstract
  Group: Ab
  Data: A novel approach which conjoins elements of experimental macroeconomics and behavioral finance allows us to study the components of industrial firms' currency trade decisions in the controlled environment of a laboratory. We analyze how firms operate in the currency market in a deterministic two-country model with two currencies. Consistent with presumptions of real-world behavior, subjects in our experiment tend to base their trade decisions on definite rather than on uncertain key data: Interest rates have a high impact, while technical analysis plays a minor role. We finally demonstrate how a simple decision rule that incorporates our findings might outperform the actually observed trade decisions. [ABSTRACT FROM AUTHOR]
– Name: AbstractSuppliedCopyright
  Label:
  Group: Ab
  Data: <i>Copyright of Journal of Behavioral Finance is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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RecordInfo BibRecord:
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      – Type: doi
        Value: 10.1080/15427560902728969
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      – Code: eng
        Text: English
    PhysicalDescription:
      Pagination:
        PageCount: 11
        StartPage: 44
    Subjects:
      – SubjectFull: Macroeconomics
        Type: general
      – SubjectFull: Finance
        Type: general
      – SubjectFull: Business
        Type: general
      – SubjectFull: Interest rates
        Type: general
      – SubjectFull: Foreign exchange rates
        Type: general
      – SubjectFull: Financial institutions
        Type: general
      – SubjectFull: Communication in financial institutions
        Type: general
    Titles:
      – TitleFull: Behavioral Finance Meets Experimental Macroeconomics: On the Determinants of Currency Trade Decisions.
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            NameFull: Kaiser, Johannes
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          Name:
            NameFull: Kube, Sebastian
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              M: 03
              Text: 2009
              Type: published
              Y: 2009
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              Value: 10
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              Value: 1
          Titles:
            – TitleFull: Journal of Behavioral Finance
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