boneztelli

The Capital Asset Pricing Model: Theory and Evidence

The Capital Asset Pricing Model (CAPM) is based on the assumptions of complete agreement regarding return distributions and risk-free borrowing and lending, implying that all investors perceive the same investment opportunities and maintain similar portfolios of risky assets, but the allocation of risk-free assets could vary depending on the risk tolerance of each investor. TheyContinue reading “The Capital Asset Pricing Model: Theory and Evidence”

Embracing The Process

Each individual might have a unique journey and experience to reach a certain level of understanding. In research, a question is raised and will be answered through the appropriate methodology to conclude. Analogously, we might have our questions about particular things that will eventually be revealed, but the process to get to the answers mightContinue reading “Embracing The Process”

Dissolution-Resolution

Do you think I have forgotten about you?I was about to tell you I had not spent a day without thinking about you. But just now, I changed me mind. I came to realize what I want and need.Do you think I tell people things?So just one drink, tell me how happy you are there,Continue reading “Dissolution-Resolution”

On Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias

An anomaly in economics occurs when an empirical outcome is challenging to justify, or when it requires unrealistic assumptions for its explanation using the underlying theories. In simpler terms, it pertains to a real-life scenario that contradicts or departs from the conventional theory. The anomalies discussed by Kahneman et al. (1991) are the endowment effectContinue reading “On Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias”

The Less We Know, The Better?

Many theories, inventions, innovations, and technologies arise from human curiosity and the search for information and truth. However, while curiosity is part of human natural characteristics that might lead to information gathering, it might bring drawbacks if the collected information is not filtered. Information overload and the negative impact of social media are essential subtopicsContinue reading “The Less We Know, The Better?”

The Messenger (Part 6)

A succinct summary of a certain period in photos and insightful quotes (according to the author’s opinion) Individuals face a range of options each day. Some of them would result in actions, and some would be sacrificed, creating opportunity costs. Those actions also have outcomes and consequences that might change individuals’ paths. While people wouldContinue reading “The Messenger (Part 6)”

A Comment on Why You Should Never Use the Hodrick-Prescott Filter

In his article, Hamilton (2017) conveyed a critique of the Hodrick-Prescott (HP) filter, arguing against its utilization due to several inherent issues. He emphasizes that the filter’s sensitivity to the smoothing parameter selection, its tendency to generate misleading cycles, and its failure to accurately represent the actual underlying trend are significant drawbacks. While I partiallyContinue reading “A Comment on Why You Should Never Use the Hodrick-Prescott Filter”

Is It Worth the Waiting?

A discussion was running through my mind while I was waiting for the pick-up, thinking about a conversation with a friend lately. He mentioned being pragmatic in the context of marriage, meaning a marriage established not because of pure and true love, but rather due to other reasons, such as late age, matchmaking, etc. AContinue reading “Is It Worth the Waiting?”

Commentary on Monetary policy is Weaker in Recessions

In their article, Tenreyro and Thwaites (2013) conduct research to explore the impact of monetary policy on real and nominal variables at various business cycle stages. They aim to determine whether the effects of monetary policy are symmetrical or asymmetrical throughout the business cycle and identify the sources of any asymmetry observed. In my view,Continue reading “Commentary on Monetary policy is Weaker in Recessions”