The 'noise trader' model of De Long et al. provides a plausible account of the determination of the equity premium.Extension of the model to allow for privatization of publicly-owned assets yields insights into the positive political economy of privatization and into the normative question of how policies should be evaluated in the presence of mistaken beliefs.
|Place of Publication||Tilburg|
|Number of pages||16|
|Publication status||Published - 2001|
|Name||CentER Discussion Paper|
- political economy
- noise trader