Publication

Apr 2009

This paper uses weekly survey data on short- and medium-term sentiment of German investors to estimate the parameters of a stochastic model of opinion dynamics. The author finds that short-term sentiment is governed by strong social interaction with abrupt changes of direction. Medium-term sentiment, on the other hand, is a slowly moving process with more moderate social interaction.

Download English (PDF, 44 pages, 612 KB)
Author Thomas Lux
Series Kiel Institute Working Papers
Issue 1514
Publisher Kiel Institute for the World Economy
Copyright © 2009 Kiel Institute for the World Economy
JavaScript has been disabled in your browser