01655cas a2200241 a 4500 AALejournalIMF000275 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451947960 1018-5941 BD-DhAAL BD-DhAAL Redding, Lee. Noise Traders and Herding Behavior / Lee Redding. Washington, D.C. : International Monetary Fund, 1996. 1 online resource (16 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Recent developments in financial economics have included many explorations into market microstructure, that is, the internal functioning of markets and the ways in which they provide liquidity to traders. An important contribution of this literature is that prices can deviate from their fundamental values. This paper describes models of imperfect liquidity and improperly processed information in financial markets, focusing on the noise trader and investor herding literature. The motivations for this line of research are presented, followed by a description of some of the major contributions and tests of some of their empirical implications. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1996/104 Full text available on IMF http://elibrary.imf.org/view/journals/001/1996/104/001.1996.issue-104-en.xml IMF e-Library