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Juicing the Potato: The Giffen Effect and Market Volatility
| Title: | Juicing the Potato: The Giffen Effect and Market Volatility. |
 83 views 17 downloads |
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| Name(s): |
Fiske, Brian Van Tassel, Eric, Thesis advisor Florida Atlantic University, Degree grantor |
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| Type of Resource: | text | |
| Genre: | Electronic Thesis Or Dissertation | |
| Date Issued: | 2007 | |
| Publisher: | Florida Atlantic University | |
| Place of Publication: | Boca Raton, Fla. | |
| Physical Form: | application/pdf | |
| Extent: | 49 p. | |
| Language(s): | English | |
| Summary: | The key objective of this thesis is to explain how aggregate agent investment behavior, in the presence of a Giffen Good, leads to excess market volatility. The thesis relies on two microeconomic models. The first model demonstrates how, in the presence of a Giffen Good, the demand curve is discontinuous and upward sloping. By analyzing the demand curve, price regions of potential volatility are identified. Using the first model as a foundation, a second model is introduced in which a speculator trades in a dynamic setting. In this dynamic framework, opportunities for profit making by the speculator are identified. The speculative behavior aggravates market volatility. | |
| Identifier: | FA00000302 (IID) | |
| Collection: | FAU Electronic Theses and Dissertations Collection | |
| Note(s): |
Thesis (M.S.)--Florida Atlantic University, 2007. College of Business |
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| Subject(s): |
Investment analysis--Mathematics Giffen, Robert,--1837-1910 Consumption (Economics)--Mathematical models--Ireland Consumer behavior--Ireland Microeconomics |
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| Held by: | Florida Atlantic University Libraries | |
| Persistent Link to This Record: | http://purl.flvc.org/fau/fd/FA00000302 | |
| Sublocation: | Digital Library | |
| Use and Reproduction: | Copyright © is held by the author, with permission granted to Florida Atlantic University to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder. | |
| Use and Reproduction: | http://rightsstatements.org/vocab/InC/1.0/ | |
| Host Institution: | FAU | |
| Is Part of Series: | Florida Atlantic University Digital Library Collections. |
