Uncovering Market Anomalies: How Behavioral Finance Could Shape Economic Trends
The article discusses the field of Behavioral Macro-Finance, which looks at anomalies in the stock market that can be explained by human behavior. It distinguishes between behavioral macro-finance, which focuses on market anomalies, and behavioral micro-finance, which looks at individual investor behavior. The research categorizes the literature into six main topics, including bubbles, the equity premium puzzle, and the volatility puzzle. The key findings highlight how human behavior can lead to inefficiencies in the stock market, challenging traditional economic theories.