Similar Search Results

Inflation and the Informativeness of Prices

Ball, Laurence - 1993

This paper studies the welfare effects of the relative price variability arising from inflation. When agents interact … in anonymous markets, with customers buying from new suppliers each period, relative price variability benefits customers … informativeness of prices makes demand less price-elastic, thereby increasing markups. Both effects can be quantitatively significant …

Persistent link: https://www.econbiz.de/10012474695

Do prices reveal the presence of informed trading?

Collin-Dufresne, Pierre - 2012

Using a comprehensive sample of trades by Schedule 13D filers, who possess valuable private information when they accumulate stocks of targeted companies, this paper studies whether several liquidity measures reveal the presence of informed trading. The evidence suggests that when Schedule 13D...

Persistent link: https://www.econbiz.de/10012460208

Is Hard and Soft Information Substitutable? Evidence from Lockdown

Bai, Jennie; Massa, Massimo - National Bureau of Economic Research - 2021

We study information substitutability in the financial market through a quasi-natural experiment: the pandemic-triggered lockdown that has hampered people's physical interactions hence the ability to collect, process, and transmit soft information. Exploiting the cross- sectional and time-series...

Persistent link: https://www.econbiz.de/10012696422

Elections and Macroeconomic Policy Cycles

Rogoff, Kenneth - 1986

There is an extensive empirical literature on political business cycles, but its theoretical foundations are grounded in pre-rational expectations macroeconomic theory. Here we show that electoral cycles in taxes, government spending and money growth can be modeled as an equilibrium signaling...

Persistent link: https://www.econbiz.de/10012477238

The Architecture of Economic Systems : Hierarchies and Polyarchies

Sah, Raaj Kumar - 1984

This paper presents some new perspectives on the structure and performance of alternative economic organizations. We posit that decision makers make errors of judgement (for example, they sometimes select bad projects while rejecting good projects), and that how these errors are aggregated...

Persistent link: https://www.econbiz.de/10012477760

Information and Capital Markets

Stiglitz, Joseph E. - 1981

This paper provides the foundations of a general theory of information and the capital market. We show that in a pure gambling market, even with asymmetric information, there cannot exist an equilibrium with trade with rational individuals. We argue that although a pure exchange stock market is...

Persistent link: https://www.econbiz.de/10012478443

Specific Information, General Information, and Employment Matches Under Uncertainty

Viscusi, W. Kip - 1979

Employment matches under uncertainty are typically accompanied by opportunities for information acquisition. Workers can acquire specific information about productivity lotteries at the firm or general information affecting their probabilistic beliefs about work elsewhere. Enterprises can...

Persistent link: https://www.econbiz.de/10012478753

Education, Information, and Efficiency

Welch, Finis - 1973

This represents two chapters of a proposed book co-authored by Bob Evenson and myself. The subject is relationships between agricultural productivity, research and information. The first chapter of this part is concerned with the "theory" of the value of information. Among other things, the...

Persistent link: https://www.econbiz.de/10012479124

Financial Markets, the Real Economy, and Self-fulfilling Uncertainties

Benhabib, Jess - 2018

Uncertainty in both financial markets and the real economy rises sharply during recessions. We develop a model of informational interdependence between financial markets and the real economy, linking uncertainty to information production and aggregate economic activities. We argue that there...

Persistent link: https://www.econbiz.de/10012480637

Information Costs and Sequential Information Sampling

Hébert, Benjamin - 2018

We propose a new approach to modeling the cost of information structures in rational inattention problems, the "neighborhood-based" cost functions. These cost functions have two properties that we view as desirable: they summarize the results of a sequential evidence accumulation problem, and...

Persistent link: https://www.econbiz.de/10012480967

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