Market Volatility

by Robert J. Shiller

Book Overview

Market Volatility proposes an innovative theory, backed by substantial statistical evidence, on the causes of price fluctuations in speculative markets. It challenges the standard efficient markets model for explaining asset prices by emphasizing the significant role that popular opinion or psychology can play in price volatility. Why does the stock market crash from time to time? Why does real estate go in and out of booms? Why do long...

• Format: Paperback
• Language: English
• ISBN: 0262691515
• ISBN13: 9780262691512
• Release Date: January 1992
• Publisher: MIT Press
• Length: 480 Pages
• Weight: 1.40 lbs.
• Dimensions: 1.0" x 6.0" x 9.1"
• Age Range: 18 years and up
• Grade Range: Postsecondary and higher

Customer Reviews

A low volatility review

I give this book 4/5 stars despite the fact that it appears to deserve full credit because a) I'm not smart enough to fully understand Shiller's work, and b) the average book should earn around 3 stars. By recognizing my own lack of understanding, I admit that portions of Shiller's analysis which appear to be both interesting and correct, could in fact be wrong or misleading and therefore less deserving of stars. My lack of understanding creates volatility in my rating ability. By averaging my belief that this book is worth 5 stars with the long-run average review of 3 stars, I should reduce the expected error and volatility in my book reviews. The book is very interesting if you like this sort of thing, but it's also a very challenging read. My background in finance is stronger than my background in math and statistics, so I usually had to read the book with wikipedia nearby to reference math terms. Even with wikipedia, the equations got too hairy for me to follow with less than 100% concentration. I found myself flipping back pages almost as often as I moved forward, and there were parts I had to just skip over. If you read this book be ready for a serious challenge. Caveat emptor. [...]

Good but technical

There are some long reviews on the book by professionals that I can't match in content. However for readers interested in this book because of previous reading of 'irrational exuberance' or even 'the new financial order', be warned! It is a pretty technical book with lot's of statistics. Without basic knowledge of all the R's and covariances a lot of the true value gets lost. Still Robert Shiller is a clear thinker and even without a good grasp of teh statistics it still contains interesting observations.

An Academic with a brain!

Shiller does to the Effecient Market Theory what Columbus did to the flat earth theory. This is one of the finest books on markets I have read, and I have read hundreds.

The best book on volatility ever written!

I am a futures trader/ stock investor/ produce distributor. My constant involvement in markets of one kind or another led me to develop a deep desire to understand volatility. Unfortunately the only books I could find dealt with option volatility. "Market Volatility" has been THE best book dealing with market mechanics that I have ever read. I recommend the book as a "must have" to my friends in the industry.