| Budget Amount *help |
¥4,160,000 (Direct Cost: ¥3,200,000、Indirect Cost: ¥960,000)
Fiscal Year 2016: ¥1,300,000 (Direct Cost: ¥1,000,000、Indirect Cost: ¥300,000)
Fiscal Year 2015: ¥1,300,000 (Direct Cost: ¥1,000,000、Indirect Cost: ¥300,000)
Fiscal Year 2014: ¥1,560,000 (Direct Cost: ¥1,200,000、Indirect Cost: ¥360,000)
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| Outline of Final Research Achievements |
This project investigates speculative trading of assets from the viewpoint of search theory, which assumes that markets are frictional. This is in sharp contrast with the traditional approach in which all markets are assumed to be perfectly competitive and frictionless. The project clarified that the asset price is not bubbly when agents are not heterogeneous. In addition, when traders form higher-order expectations (i.e., traders try to forecast the forecasts of the future traders), then even a small liquidity shock can cause the economy to fluctuate significantly.
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