Ivo Welch
Biographic Data
| ID | 1455686 |
|---|---|
| NAME | Ivo Welch |
| GIVEN NAMES | Ivo |
| FAMILY NAME | Welch |
| SIGNATURE | WELCH I |
| AFFILIATIONS | National Bureau of Economic Research |
| ORCID | 0000-0002-4347-7250 |
| VERIFIED | Yes |
| TOTAL WORKS | 10 |
| TOTAL CITATIONS | 451 |
| AUTHOR COUNT | 10 |
| EDITOR COUNT | 0 |
| FIRST PUBLICATION YEAR | 1992 |
| LATEST PUBLICATION YEAR | 2024 |
| H-INDEX | 4 |
Information Cascades and Social Learning
Social learning is the updating of beliefs based on observation of others. Such observation can lead to efficient aggregation of information, but also to inaccurate decisions, fragility of mass behaviors, and, in the case of information cascades, to complete blockage of learning. We review the theory of information cascades and social learning and discuss important themes, insights, and applications of this literature as it has developed over the…
Information Cascades and Social Learning
Do Powerful Politicians Really Cause Corporate Downsizing
Initial Public Offerings ( IPO s)
In contrast to a seasoned offering, an initial public offering (IPO) is the offering of shares of a company, which are not publicly traded.
A Comprehensive Look at The Empirical Performance of Equity Premium Prediction
Our article comprehensively reexamines the performance of variables that have been suggested by the academic literature to be good predictors of the equity premium. We find that by and large, these models have predicted poorly both in-sample (IS) and out-of-sample (OOS) for 30 years now; these models seem unstable, as diagnosed by their out-of-sample predictions and other statistics; and these models would not have helped an investor with access …
Capital Structure and Stock Returns
U.S. corporations do not issue and repurchase debt and equity to counteract the mechanistic effects of stock returns on their debt-equity ratios. Thus over one- to five-year horizons, stock returns can explain about 40 percent of debt ratio dynamics. Although corporate net issuing activity is lively and although it can explain 60 percent of debt ratio dynamics (long-term debt issuing activity being most capital struc-ture–relevant), corporate iss…
Learning from the Behavior of Others
Learning by observing the past decisions of others can help explain some otherwise puzzling phenomena about human behavior. For example, why do people tend to converge on similar behavior? Why is mass behavior prone to error and fads? The authors argue that the theory of observational learning, and particularly of informational cascades, has much to offer economics, business strategy, political science, and the study of criminal behavior
Rational herding in financial economics
Culture, Information, and Screening Discrimination
The authors show that discrimination can occur even when it is common knowledge that underlying group characteristics do not differ and employers do not prefer same-group candidates. When employers can judge job applicants' unknown qualities better when candidates belong to the same group and hire the best prospect from a large pool of applicants, the top applicant is likely to have the same background as the employer. The model has policy, empir…
A Theory of Fads, Fashion, Custom, and Cultural Change as Informational Cascades
An informational cascade occurs when it is optimal for an individual, having observed the actions of those ahead of him, to follow the behavior of the preceding individual without regard to his own information. We argue that localized conformity of behavior and the fragility of mass behaviors can be explained by informational cascades
A Theory of Fads, Fashion, Custom, and Cultural Change as Informational Cascades
An informational cascade occurs when it is optimal for an individual, having observed the actions of those ahead of him, to follow the behavior of the preceding individual without regard to his own information. We argue that localized conformity of behavior and the fragility of mass behaviors can be explained by informational cascades
Learning from the Behavior of Others
Learning by observing the past decisions of others can help explain some otherwise puzzling phenomena about human behavior. For example, why do people tend to converge on similar behavior? Why is mass behavior prone to error and fads? The authors argue that the theory of observational learning, and particularly of informational cascades, has much to offer economics, business strategy, political science, and the study of criminal behavior
Culture, Information, and Screening Discrimination
The authors show that discrimination can occur even when it is common knowledge that underlying group characteristics do not differ and employers do not prefer same-group candidates. When employers can judge job applicants' unknown qualities better when candidates belong to the same group and hire the best prospect from a large pool of applicants, the top applicant is likely to have the same background as the employer. The model has policy, empir…
Capital Structure and Stock Returns
U.S. corporations do not issue and repurchase debt and equity to counteract the mechanistic effects of stock returns on their debt-equity ratios. Thus over one- to five-year horizons, stock returns can explain about 40 percent of debt ratio dynamics. Although corporate net issuing activity is lively and although it can explain 60 percent of debt ratio dynamics (long-term debt issuing activity being most capital struc-ture–relevant), corporate iss…
A Theory of Fads, Fashion, Custom, and Cultural Change as Informational Cascades
An informational cascade occurs when it is optimal for an individual, having observed the actions of those ahead of him, to follow the behavior of the preceding individual without regard to his own information. We argue that localized conformity of behavior and the fragility of mass behaviors can be explained by informational cascades
Rational herding in financial economics
Culture, Information, and Screening Discrimination
The authors show that discrimination can occur even when it is common knowledge that underlying group characteristics do not differ and employers do not prefer same-group candidates. When employers can judge job applicants' unknown qualities better when candidates belong to the same group and hire the best prospect from a large pool of applicants, the top applicant is likely to have the same background as the employer. The model has policy, empir…
Learning from the Behavior of Others
Learning by observing the past decisions of others can help explain some otherwise puzzling phenomena about human behavior. For example, why do people tend to converge on similar behavior? Why is mass behavior prone to error and fads? The authors argue that the theory of observational learning, and particularly of informational cascades, has much to offer economics, business strategy, political science, and the study of criminal behavior
Capital Structure and Stock Returns
U.S. corporations do not issue and repurchase debt and equity to counteract the mechanistic effects of stock returns on their debt-equity ratios. Thus over one- to five-year horizons, stock returns can explain about 40 percent of debt ratio dynamics. Although corporate net issuing activity is lively and although it can explain 60 percent of debt ratio dynamics (long-term debt issuing activity being most capital struc-ture–relevant), corporate iss…
A Comprehensive Look at The Empirical Performance of Equity Premium Prediction
Our article comprehensively reexamines the performance of variables that have been suggested by the academic literature to be good predictors of the equity premium. We find that by and large, these models have predicted poorly both in-sample (IS) and out-of-sample (OOS) for 30 years now; these models seem unstable, as diagnosed by their out-of-sample predictions and other statistics; and these models would not have helped an investor with access …
Initial Public Offerings ( IPO s)
In contrast to a seasoned offering, an initial public offering (IPO) is the offering of shares of a company, which are not publicly traded.
Do Powerful Politicians Really Cause Corporate Downsizing
Information Cascades and Social Learning
Information Cascades and Social Learning
Social learning is the updating of beliefs based on observation of others. Such observation can lead to efficient aggregation of information, but also to inaccurate decisions, fragility of mass behaviors, and, in the case of information cascades, to complete blockage of learning. We review the theory of information cascades and social learning and discuss important themes, insights, and applications of this literature as it has developed over the…
Psychology (5 works) · Social Psychology (5 works) · Computer Science (4 works) · Economics (4 works) · Information cascade (4 works) · Business (3 works) · Cognitive psychology (3 works) · Financial economics (3 works) · Financial Markets and Investment Strategies (3 works) · Financial Reporting and Valuation Research (3 works)