The Behavioural Finance Revolution
Show Less

The Behavioural Finance Revolution

A New Approach to Financial Policies and Regulations

Edited by Riccardo Viale, Shabnam Mousavi, Barbara Alemanni and Umberto Filotto

Financial markets are complex. Regulators strive to predict ways in which they can malfunction and create rules to prevent this from happening, yet behavioural impacts are often overlooked. This book explores how behavioural finance can go hand-in-hand with traditional methods to help banks and regulators create better policies. It also demonstrates how the behavioural finance revolution has opened the way to a more integrated approach to the analysis of economic phenomena.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 4: Do regulators know better?

Umberto Filotto


Behavioral regulation is on the agenda of politicians and authorities of most countries as coercive legislation has financial and political costs that are becoming difficult to afford. However, not all measures are equivalent, and not all of them are effective and appropriate in any situation: some issues have thus to be discussed to develop an effective and balanced approach. The preliminary step is the development of a shared vision of objectives of the regulation; once this is reached there are some issues specific to the behavioral approach. The first one is answering the question of the preferability of the gentle push over mandatory rules; then, if we accept the fact that regulators have the right and the duty to regulate, we should be confident that they are competent enough; finally there is the issue of responsibility: what happens, who is responsible and what are the consequences if things go wrong?

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.