Welfare effects of the allocation of talent to financial trading : what does the Grossman-Stiglitz model say?

Lutz G. Arnold, Sebastian Zelzner

This paper investigates the implications of the Grossman-Stiglitz (1980) model on the informational efficiency of financial markets for the optimality of the allocation of talent to financial trading versus entrepreneurship. Informed traders make the financial market more informationally efficient, entrepreneurs create output and jobs. The model indicates that financial trading attracts too much, rather than too little, talent.

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Year of publication:	February 2020
Authors:	Arnold, Lutz ; Zelzner, Sebastian
Publisher:	Erlangen-Nuremberg : BGPE, Bavarian Graduate Program in Economics
Subject:	market efficiency \| asymmetric information \| allocation of talent \| occupational choice \| Asymmetrische Information \| Asymmetric information \| Theorie \| Theory \| Berufswahl \| Occupational choice \| Allokation \| Allocation \| Wohlfahrtsanalyse \| Welfare analysis \| Effizienzmarkthypothese \| Efficient market hypothesis

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Extent:	1 Online-Ressource (circa 57 Seiten) Illustrationen
Series:	BGPE discussion paper : Bavarian graduate program in economics. - Nuremberg : [Verlag nicht ermittelbar], ISSN 1863-5733, ZDB-ID 2497481-X. - Vol. no. 190
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	hdl:10419/237981 [Handle]
Classification:	G14 - Information and Market Efficiency; Event Studies ; J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012164697