1,720,992 research outputs found
Good vibes only: The crypto-optimistic behavior
No full textThis paper aims at investigating the relationship between news-driven sentiments and the convergence of behavior in cryptocurrencies market, contributing to the existing literature in the field. The novelty stands in the relation set between the tone of news and returns dispersion. The average daily sentiment score deriving from a worldwide online news dataset has been exploited as a proxy of market humor, in the attempt to identify how emotions spread by the press are related to traders’ actions. By employing both Cross-sectional standard (CSSD) and absolute (CSAD) deviation, it is found that the rises and falls of optimism shape returns variability. Indeed, the paper evidences how an increase of news positivity is associated with a lower returns dispersion, evidencing the convergence of beliefs among investors
Sentiment spillover and price dynamics: Information flow in the cryptocurrency and stock market
No full textThis study examines the sentiment–returns relationship in both stock (S&P500) and cryptocurrency (Bitcoin) markets. An explorative wavelet analysis evidences period of episodic interconnectedness across different data frequencies. Therefore, Transfer Entropy (ET) measures remark the relative statistical significance, frequently outperforming traditional (VAR) estimates. In particular, ET methods successfully identify the mediating role of sentiments in connecting the two different markets. Hence, it is discussed how the potential cryptocurrencies indirect linkage with real economy moves through market sentiments
The Ambiguity Box: A new tool to generate ambiguity in the lab
No full textThe Ambiguity Box is a software tool that visualizes uncertainty in laboratory experiments. It is a dynamic frame composed of squares that randomly change colours, creating an uncertain and ambiguous environment. This encourages participants to infer the probabilities of each colour. The tool contributes to the economic literature by introducing a new layer of uncertainty, overcoming limitations of traditional tools like the Bingo Blower. The Ambiguity Box is more practical as it is software-based and can be used with any electronic device. It is flexible, allowing experimenters to predetermine the number of squares of each colour, making it adaptable to various experimental designs. It is easily scalable, suitable for use in different contexts, and allows for the exploration of decision-making under ambiguity in diverse settings, dealing also with extremely low probabilities
Inequalities in financial markets: Evidences from a laboratory experiment
No full textThe purpose of this paper is to examine the effects on welfare distribution of quality and quantity of information among traders in laboratory financial markets. Results lead us to conclude that signal accuracy matters in underpinning inequality distribution. Generally, there is evidence that high quality signals produce lower inequality. However, by analyzing tail behavior, there seems to be cases of overconfidence in high quality signals generating "extra" level of inequality
From the "age of instability" to the "age of responsibility": economic uncertainty and sustainable investments
No full textPurposeThis paper sets out to investigate investors' sustainable preferences under different market conditions. Specifically, the authors examine the existence of a positive sustainable asset pricing gap, and whether it is influenced by the socioeconomic and financial sentiments. The increase of uncertainty rises investors' skepticism whether sustainable companies are under-performing the traditional counterparts, causing larger increasing gap. Conversely, if sustainable assets are overperforming, the increase of market uncertainty raises investors' sustainable preferences.Design/methodology/approachThe authors examine the existence of a positive sustainable asset pricing gap, and whether it is influenced by the socioeconomic and financial sentiments. Through a quantile regression, the authors remark the variability of sustainable preferences where market participants, although recognizing the present and future value added of sustainable investing, also show skepticism (i.e. asymmetric tail behavior). However, the analysis of the total change of sustainable investments returns over time demonstrates the emergence of positive viewpoints incentivized by economic and market uncertainty.FindingsThe market-driven social responsibility exalts the positive insights regarding the future of sustainable developments. As the authors discuss along the paper, investors are gaining awareness about the environmental and social goals pursued by socially responsible companies. Hence, the authors consider how economic instability might stimulate the assessment of the social and environmental impact of the unsustainable production systems, switching investments toward virtuous sustainable companies. This could generate a series of positive externalities that might improve the welfare conditions of the whole society.Originality/valueThe authors conduct an original empirical exercise, combining different techniques (i.e. quantile regressions and wavelet analysis). To the best of the authors' knowledge, this is the first paper trying to evidence a systematic connection between market uncertainty and sustainable preferences accounting for different market states (thanks to quantile regressions)
Who raised from the abyss? A comparison between cryptocurrency and stock market dynamics during the COVID-19 pandemic
No full textThis research examines the behaviour of cryptocurrencies and stock markets during the COVID-19 pandemic through the wavelet coherence approach and Markov switching autoregressive model. Our results show a financial contagion in March, since both cryptocurrency and stock prices fell steeply. Despite this turn-down, cryptocurrencies promptly rebounded, while stock markets are trapped in the bear phase. In other words, we observe that the price dynamics during the pandemic depends on the type of the market. These findings are relevant for investors since some hedging properties can be found in the cryptocurrency response to such a drastic event
From the “age of instability” to the “age of responsibility”: economic uncertainty and sustainable investments
No full textPurpose: This paper sets out to investigate investors' sustainable preferences under different market conditions. Specifically, the authors examine the existence of a positive sustainable asset pricing gap, and whether it is influenced by the socioeconomic and financial sentiments. The increase of uncertainty rises investors' skepticism whether sustainable companies are under-performing the traditional counterparts, causing larger increasing gap. Conversely, if sustainable assets are overperforming, the increase of market uncertainty raises investors' sustainable preferences. Design/methodology/approach: The authors examine the existence of a positive sustainable asset pricing gap, and whether it is influenced by the socioeconomic and financial sentiments. Through a quantile regression, the authors remark the variability of sustainable preferences where market participants, although recognizing the present and future value added of sustainable investing, also show skepticism (i.e. asymmetric tail behavior). However, the analysis of the total change of sustainable investments returns over time demonstrates the emergence of positive viewpoints incentivized by economic and market uncertainty. Findings: The market-driven social responsibility exalts the positive insights regarding the future of sustainable developments. As the authors discuss along the paper, investors are gaining awareness about the environmental and social goals pursued by socially responsible companies. Hence, the authors consider how economic instability might stimulate the assessment of the social and environmental impact of the unsustainable production systems, switching investments toward virtuous sustainable companies. This could generate a series of positive externalities that might improve the welfare conditions of the whole society. Originality/value: The authors conduct an original empirical exercise, combining different techniques (i.e. quantile regressions and wavelet analysis). To the best of the authors’ knowledge, this is the first paper trying to evidence a systematic connection between market uncertainty and sustainable preferences accounting for different market states (thanks to quantile regressions)
Agents interaction and price dynamics: evidence from the laboratory
No full textUsing data collected from an experimental double auction market, we study the dynamics of interaction among traders. Our focus is on the effect the trading network has on price dynamics and price-fundamental convergence. At the aggregate level, the network of empirical exchanges reveals properties that are dissimilar from random graphs and, in particular, high centrality and high clustering. Precisely, these properties are identifiable as the cause of price volatility and divergence from the fundamental value. At the microscopic level, we find out how the topological properties of the network derive from the behavior of traders. In fact, our findings show that it is the unbridled trading action of very centralized players who implement a minority game, to give rise to volatility clustering and arbitrage opportunities
After the storm: Environmental tragedy and sustainable mobility
No full textDue to mounting environmental challenges, communities are increasingly prioritising resilience and sustainability. Environmental disasters can be seen as windows of opportunity for collective action, influencing pro-environmental attitudes and engagement. While personal experiences of catastrophe can increase environmental awareness, they can also affect social capital, impacting relationships with peers and institutions. Within this context, a post-disaster community might be encouraged to put more efforts in the local urban sustainable transformation to reduce the impact of climate-change related event. To this end, individuals' daily micro-mobility choices may offer insight into community engagement with sustainability initiatives, given the link between modes of transportation and long-term urban pollution. Through a survey of Italian citizens, we explored how disaster experiences shaped attitudes towards sustainable modes of mobility, as well as changes in individual and social factors. The analysis employed a structural equation model based on an extended version of the theory of planned behaviour. The results revealed that disaster experiences tended to heighten awareness of climate change risk while also reducing social interaction, thereby affecting pro-environmental behaviour. Trust in local government was not permanently affected, highlighting the difficulty in identifying the direct impacts of environmental disaster experiences on pro-environmental actions. Sustainable consumption choices and pro-environmental attitudes may be influenced by social and psychological factors, including personal experiences, personal well-being and civic engagement
In need of a sustainable and just fashion industry: identifying challenges and opportunities through a systematic literature review in a Global North/Global South perspective
No full textSince the late twentieth century, the global fashion industry has been increasingly embracing the business model known as fast fashion. Characterised by rapid production cycles, fleeting trends, low-cost garments and large-scale production, fast fashion seems to meet consumer demand for affordable and trendy clothing. However, its environmental impact as a major polluter poses significant challenges to sustainability and circularity initiatives. This article presents the results of a systematic literature review, exploring the unsustainable consequences of fast fashion, focusing on both demand and supply side, from a geographical perspective. Using a Global North–Global South framework, it explores differences in socio-economic structures, consumption and production patterns, access to resources and environmental impacts. The analysis suggests that a fair and equitable transition towards a sustainable and circular fashion industry will require the links between business, society and nature to be reconsidered, to avoid perpetuating the inequalities associated with the global linear capitalist economy. The findings highlight the importance of both markets and institutions in sustainable growth. In the Global North, the most frequently discussed topics relate to investment and research and development with respect to new technologies or system innovations often with the support of well-structured political guidance. Conversely, in the Global sustainable initiatives tend to be scattered, country-specific and intricately tied to particular socio-economic and cultural contexts
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