A Literature Review on the Evidence and Limitation for the AMH Theory
- 10.2991/assehr.k.211209.468How to use a DOI?
- Adaptive Market Hypothesis; Efficient Market Hypothesis; Application; Limitation; Market efficiency
It remains a challenge for the Adaptive Market Hypothesis (AMH) to reconcile Efficient Market Hypothesis (EMH) with behavioural finance. This paper reviews many previous papers and examines AMH whether it is consistent with real changes in markets. By examining previous studies on the relationship between AMH and EMH, this paper summarizes the efficiency of different types of markets in different countries to prove Adaptive Market Hypothesis. In most stock markets, bond markets, foreign exchange markets and other relevant markets, the changes of efficiency overtime are consistent with implication of AMH. However, there are still limitations of AMH which cannot well explain the efficiency of crude oil markets. Furthermore, it is criticized being a qualitative model instead of a quantitative model. This research enables us to better understand the theory of AMH as well as its application and limitation.
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Zhaoyu Li AU - Rui Li AU - Boning Xiao PY - 2021 DA - 2021/12/15 TI - A Literature Review on the Evidence and Limitation for the AMH Theory BT - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) PB - Atlantis Press SP - 2886 EP - 2891 SN - 2352-5428 UR - https://doi.org/10.2991/assehr.k.211209.468 DO - 10.2991/assehr.k.211209.468 ID - Li2021 ER -