Improving the Model of Kirman, (1993). Linking Markov Chain and Probabilities With the Greek Christian Orthodox. Evidence From the US Closed-End Funds Industry

Several theories attempt to make sense of the closed-end funds discounts within a rational framework such as those by Malkiel, (1977,1995), Barclay, Holderness and Pontiff (1993), Kumar and Nornoha (1992), Pontiff (1996), Chen, Kan and Miller (1993), Chopra, lee, Shleifer and Thaler (1993), Leonard and Shull (1996), Brauer (1993) and Swaminathan (1996). In this article, we propose an improving version of Kirman, 1993, model based on Markov chain and probabilities with the Greek Christian Orthodox. The purpose is to explain the discount of the US closed-end funds industry. We will use the average discount of US closed-end funds of different sectors over the period January 1990 to January 2020. There is a wide dispersion between the lower and upper bounds in each category of closed-end funds. In addition, from the coefficient of variation, we see that there is a high degree of dispersion between all sectors of closed-end funds category