Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/248606 
Year of Publication: 
2021
Series/Report no.: 
ISER Discussion Paper No. 1147
Publisher: 
Osaka University, Institute of Social and Economic Research (ISER), Osaka
Abstract: 
We investigate the effect of preannounced market intervention on an asset price as well as participants' welfare in an experimental frame- work where participants have consumption smoothing motives to trade the asset. The results show that, on one hand, the preannounced inter- vention results in significantly larger overpricing of the asset relative to the rational expectations equilibrium level in periods prior to the intervention compared with the treatment without it. The participants' welfare, measured by the discounted sum of the payoffs at the beginning of the experiment, on the other hand, are not significantly worsened by the intervention.
Subjects: 
Asset Pricing
Consumption Smoothing
Bounded Rationality
Quantitative Easing
JEL: 
C90
D84
Document Type: 
Working Paper

Files in This Item:
File
Size
2.89 MB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.