Similar Search Results

Rahi, Rohit; Zigrand, Jean-Pierre - London School of Economics (LSE) - 2009

Market liquidity is typically characterized by a number of ad hoc metrics, such as depth, volume, bid-ask spreads etc. No general coherent denition seems to exist, and few attempts have been made to justify the existing metrics on welfare grounds. In this paper we propose a welfare-based...

Persistent link: https://www.econbiz.de/10010884503

Medicines in parallel trade in the European Union: a gravity specification

Costa-i-Font, Joan; Kanavos, Panos - London School of Economics (LSE) - 2007

of arbitrage, it is primarily a regulation-induced phenomenon. As a result, although the driving force for parallel trade … the regulation of and competition in the distribution chain in the countries of origin and destination. The paper draws on …

Persistent link: https://www.econbiz.de/10010745350

A theory of strategic intermediation and endogenous liquidity

Rahi, Rohit; Zigrand, Jean-Pierre - London School of Economics (LSE) - 2007

Market liquidity is typically characterized by a number of ad hoc metrics, such as depth (or market impact), volume, intermediation costs (such as breadth) etc. No general coherent denition seems to exist, and few attempts have been made to justify the existing metrics on welfare grounds. In...

Persistent link: https://www.econbiz.de/10010745443

Strategic financial innovation in segmented markets

Rahi, Rohit; Zigrand, Jean-Pierre - London School of Economics (LSE) - 2004

We study an equilibrium model with restricted investor participation in which strategic arbitrageurs reap profits by exploiting mispricings across different trading locations. We edogonize the asset structure as the outcome of the security design game played by the arbitrageurs. The equilibrium...

Persistent link: https://www.econbiz.de/10010745660

A search-based theory of the on-the-run phenomenon

Vayanos, Dimitri; Weill, Pierre-Olivier - London School of Economics (LSE) - 2005

with no-arbitrage. We derive closed-form solutions for small frictions, and can generate price differentials in line with …

Persistent link: https://www.econbiz.de/10010745747

Strategic financial innovation in segmented markets

Rahi, Rohit; Zigrand, Jean-Pierre - London School of Economics (LSE) - 2007

We study a model with restricted investor participation in which strategic arbitrageurs reap profits by exploiting mispricings across different market segments. We endogenize the asset structure as the outcome of a security design game played by the arbitrageurs. The equilibrium asset structure...

Persistent link: https://www.econbiz.de/10010746496

Market quality and contagion in fragmented markets

Rahi, Rohit; Zigrand, Jean-Pierre - London School of Economics (LSE) - 2013

Financial market liquidity has become increasingly fragmented across multiple trading platforms. We propose an intuitive welfare-based market quality metric that can properly aggregate local market conditions across both securities and trading venues. Our analysis rests on a general equilibrium...

Persistent link: https://www.econbiz.de/10011171758

Walrasian foundations for equilibria in segmented markets

Rahi, Rohit; Zigrand, Jean-Pierre - London School of Economics (LSE) - 2014

We study a CAPM economy with segmented financial markets and competitive arbitrageurs who link these markets. We show that the equilibrium of the arbitraged economy is Walrasian in the sense that it coincides with the equilibrium of an appropriately defined competitive economy with no...

Persistent link: https://www.econbiz.de/10011126554

Really responsive regulation

Baldwin, Robert; Black, Julia - London School of Economics (LSE) - 2007

Really Responsive Regulation seeks to add to current theories of enforcement by stressing the case for regulators to be …

Persistent link: https://www.econbiz.de/10010744983

Forms and paradoxes of principles-based regulation

Black, Julia - London School of Economics (LSE) - 2008

Principles-based regulation is high on the regulatory agenda in a number of regulatory domains, most particularly … financial regulation. Its supporters argue that it provides a flexible regulatory regime which can facilitate innovation; its … detractors argue that it is simply lax regulation. This article explores the political rhetoric surrounding principles …

Persistent link: https://www.econbiz.de/10010745006