, portfolio constraints can lead to situations where not all arbitrage opportunities are necessarily eliminated in equilibrium …. For a world with portfolio constraints the concept of no arbitrage has to be replaced by a weaker concept which we call no … unlimited arbitrage. Second, though we can characterize prices which allow no unlimited arbitrage by the existence of certain …

, portfolio constraints can lead to situations where not all arbitrage opportunities are necessarily eliminated in equilibrium …. For a world with portfolio constraints the concept of no arbitrage has to be replaced by a weaker concept which we call no … unlimited arbitrage. Second, though we can characterize prices which allow no unlimited arbitrage by the existence of certain …

arbitrage, which requires a minimum divergence before the costs of arbitrage can be recouped. In this paper, we examine this … reasoning. If arbitrage was indeed the cause of mean reversion, one would expect to see a quantity respose of trade flows at the …

arbitrage, which requires a minimum divergence before the costs of arbitrage can be recouped. In this paper, we examine this … reasoning. If arbitrage was indeed the cause of mean reversion, one would expect to see a quantity respose of trade flows at the …