We analyze the effects of the observed increased share of delegated capital for trading strategies and equilibrium … prices by introducing delegation into a standard Lucas exchange economy. In equilibrium, some investors trade on their own … capital that is delegated is low, all funds follow the same strategy. However, when the equilibrium share of delegated capital …

, the extent of delegation and equilibrium prices are all determined endogenously within the model we consider. Symmetric … performance fees have more complex effects on equilibrium prices and Sharpe ratios, with the signs of these effects fluctuating …

general-equilibrium analysis in the presence of money illusion generates implications that are consistent with several …

equilibrium model of trade under imperfect competition. The focus of the paper is the welfare consequences of reducing trade … same trade cost reduction plus a switch from a segmented to an integrated market equilibrium. In both cases we find large …

We use a general equilibrium model as a laboratory for generating predictable excess returns and for assessing the … advantage of this approach, relative to the existing literature, is that the equilibrium model delineates the precise nature of …

opinion enter into security prices. In the determination of equilibrium, we employ a representative investor with stochastic …