the risk free rate of return plays a main role in financial economic theory and financial markets. due to prohibition of interest in islamic countries there is no specific financial instrument with risk free rate of return as a criterion for measuring the risk free rate of market. we apply the kalman filter to estimate this variable for financial markets in iran. the technique is based on a sta...

Recent literature in empirical finance is surveyed in its relation to underlying behavioral principles, principles which come primarily from psychology, sociology and anthropology. The behavioral principles discussed are: prospect theory, regret and cognitive dissonance, anchoring, mental compartments, overconfidence, overand underreaction, representativeness heuristic, the disjunction effect, ...

In a recent article [1], the authors report evidence for an intriguing two-phase behavior of financial markets when studying the distribution of volume imbalance (Ω) conditional to the local intensity of its fluctuations (Σ). We show here that this apparent phase transition is a generic consequence of the conditioning and exists even in the absence of any non trivial collective phenomenon. More...

this paper tries to survey the independence of central bank of iran and its relationship to inflation by using the data of 56 developing countries during 1990s. the results signifies that there are no significant relationship between inflation and the independence of central banks in these countries. in other words, according to the existing evidences, not all the developing countries with high...