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Dow, James - 2006

Noise traders are agents whose theoretical existence has been hypothesized as a way of solving certain fundamental problems in Financial Economics. We briefly review the literature on noise traders. The is an entry for The New Palgrave: A Dictionary of Economics, 2nd Edition (Palgrave Macmillan:...

Persistent link: https://www.econbiz.de/10012466412

Equilibrium Asset Prices Under Imperfect Corporate Control

Dow, James - 2003

version of the separation of ownership and control -- Jensen's (1986) free cash flow theory--into a dynamic equilibrium model …-building managers who prefer to invest all free cash flow rather than distributing it to shareholders. Sharefholders are aware of this …

Persistent link: https://www.econbiz.de/10012468940

Does the Sector Bias of Skill-Biased Technical Change Explain Changing Wage Inequality?

Haskel, Jonathan E. - 1998

This paper examines whether the sector bias of skill-biased technical change (sbtc) explains changing skill premia within countries in recent decades. First, using a two-factor, two-sector, two-country model we demonstrate that in many cases it is the sector bias of sbtc that determines sbtc's...

Persistent link: https://www.econbiz.de/10012472244

International Trade and Per Capita Income Convergence : A Difference-in-Differences Analysis

Slaughter, Matthew J. - 1998

In this paper I analyze whether international trade contributes to per capita income convergence across countries. The analysis focuses on four important post-1945 multilateral trade liberalizations. To identify trade's effect on income dispersion, in each case I use a difference-in-differences'...

Persistent link: https://www.econbiz.de/10012472251

International Trade and Labor-Demand Elasticities

Slaughter, Matthew J. - 1997

In this paper I try to determine whether international trade has been increasing the own-price elasticity of demand for U.S. labor in recent years. The empirial work yields three main results. First, from 1960 through 1990 demand for U.S. production labor became more elastic in manufacturing...

Persistent link: https://www.econbiz.de/10012472549

Per Capita Income Convergence and the Role of International Trade

Slaughter, Matthew J. - 1997

theory. The key point here is that countries trading is not sufficient proof that trade helps cause per capita income …

Persistent link: https://www.econbiz.de/10012472931

Stock Market Efficiency and Economic Efficiency : Is There a Connection?

Dow, James - 1995

'informationally efficient' prices in the economy, have no direct role in the allocation of equity capital since managers have … efficiency? We present a model of the stock market in which: (i) managers have discretion in making investments and must be given … the right incentives; and (ii) stock market traders may have important information that managers do not have about the …

Persistent link: https://www.econbiz.de/10012473644

Profitable Informed Trading in a Simple General Equilibrium Model of Asset Pricing

Dow, James - 1993

This paper presents a simple general equilibrium model of asset pricing in which profitable informed trading can occur without any "noise" added to the model. It shows that models of profitable informed trading must restrict the portfolio choices of uninformed traders: in particular, they cannot...

Persistent link: https://www.econbiz.de/10012474643

Arbitrage Chains

Dow, James - 1993

In efficient markets the price should reflect the arrival of private information. The mechanism by which this is accomplished is arbitrage. A privately informed trader will engage in costly arbitrage, that is, trade on his knowledge that the price of an asset is different from the fundamental...

Persistent link: https://www.econbiz.de/10012474644

Stock Price Manipulation, Market Microstructure and Asymmetric Information

Allen, Franklin - 1991

In recent years, there has been a large literature on how stock exchange specialists set prices when there are investors who know more about the stock than they do. An important assumption in this literature is that there are *liquidity traders* who are equally likely to buy or sell for...

Persistent link: https://www.econbiz.de/10012475127