Smart Agents and Sentiment in the Heterogeneous Agent Model

: We show that the cusp catastrophe model explains the crash of stock exchanges much better than other models. On the data of U.S. stock markets we demonstrate that the crash of 1987 may be better explained by cusp catastrophe theory, which is not true for the

• Type: Journal
• Year: 2010
• Where: ERCIM
• Authors: Lukás Vácha, Jozef Baruník, Miloslav Vosvrda
• Keywords: Cusp Catastrophe, Cusp Catastrophe Model, Cusp Catastrophe Theory, ERCIM 2010