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Innovation, Competition and Welfare-Enhancing Monopoly
Darby, Michael R. - 2011
The basic competitive model with freely available technology is suited for static industries but misleading as applied to major innovative economies for which development of new technologies equals in magnitude around 10% of gross domestic investment. We distinguish free generic technology from...
Persistent link: https://www.econbiz.de/10012757081
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Strategic Trade, Competitive Industries and Agricultural Trade Disputes
Bagwell, Kyle; Staiger, Robert W. - 2021
The primary predictions of strategic-trade theory are not restricted to imperfectly-competitive markets. Indeed, these … predictions emerge in a natural three-country extension of the traditional theory of trade policy in competitive markets, once the … theory is augmented to allow for politically-motivated governments, so that the sign of export policy may be converted from …
Persistent link: https://www.econbiz.de/10013227741
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Investor Attention : Overconfidence and Category Learning
Xiong, Wei - 2010
Motivated by psychological evidence that attention is a scarce cognitive resource, we model investors' attention allocation in learning and study the effects of this on asset-price dynamics. We show that limited investor attention leads to ``category-learningquot; behavior, i.e., investors tend...
Persistent link: https://www.econbiz.de/10012762445
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Financial Super-Markets : Size Matters for Asset Trade
Martin, Philippe - 2010
We introduce a new theoretical framework to analyze imperfectly competitive financial markets and trade in assets in an international context. We present a two-country macroeconomic model in which agents are risk averse, assets are imperfect substitutes, the number of financial assets is...
Persistent link: https://www.econbiz.de/10012763116
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On Forecasting Interest Rates : An Efficient Markets Perspective
Pesando, James E. - 2010
This paper reviews, from an applied forecasting perspective, the properties of short- and long-term interest rates in an efficient market. The paper emphasizes that efficient markets do not preclude economic agents from successfully forecasting movements in short-term interest rates. For brief...
Persistent link: https://www.econbiz.de/10012763198
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Cointegration and Tests of Present Value Models
Campbell, John Y. - 2010
In a model where a variable Y[sub t] is proportional to the present value, with constant discount rate, of expected future values of a variable y[sub t] the quot;spreadquot; S[sub t]= Y[sub t] - [theta sub t] will be stationary for some [theta] whether or not y[sub t]must be differenced to...
Persistent link: https://www.econbiz.de/10012763269
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Heterogeneous Expectations and Tests of Efficiency in the Yen/Dollar Forward Foreign Exchange Rate Market
Elliott, Graham - 2010
This paper examines the efficiency of the forward yen/dollar market using micro survey data. We first argue that the conventional tests of efficiency (unbiasedness) of the forward rate or of the survey forecasts do not correspond directly to the zero-profit condition. Instead, we use the survey...
Persistent link: https://www.econbiz.de/10012763699
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Equity Market Liberalizations as Country Ipos
Martell, Rodolfo - 2009
Equity market liberalizations are like IPOs, but they are IPOs of a country's stock market rather than of individual firms. Both are endogenous events whose benefits are limited by poor investor protection, agency costs, and information asymmetries. As for stock prices following an IPO, there...
Persistent link: https://www.econbiz.de/10012767766
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Information Acquisition, Efficiency, and Non-Fundamental Volatility
Hebert, Benjamin - 2020
This paper analyzes non-fundamental volatility and efficiency in a class of large games (including e.g. linear-quadratic beauty contests) that feature strategic interaction and endogenous information acquisition. We adopt the rational inattention approach to information acquisition but...
Persistent link: https://www.econbiz.de/10012840853
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The New Fama Puzzle
Bussière, Matthieu - 2018
correlated, contrary to what theory suggests – for eight advanced country exchange rates against the US dollar, over the period …
Persistent link: https://www.econbiz.de/10012927015