Motivated by the literature on limits-to-arbitrage, we build an equilibrium model of commodity markets in which … associated with producer hedging demand rises when speculative activity reduces. We conclude that limits to financial arbitrage …

This paper identifies a limit to arbitrage that arises from the fact that a firm's fundamental value is endogenous to … the act of exploiting the arbitrage. Trading on private information reveals this information to managers and helps them …

Short selling, as compared to purchasing, faces greater risks and other potential impediments. This arbitrage asymmetry …

for foreign exchanges) data, it is found that risk-free arbitrage opportunities--free lunch--do occur in the foreign … pair and (b) triangular arbitrage relationship involving three currency pairs. The latter occur much more often than the … former. Such arbitrage opportunities tend to occur when the markets are active and volatile. Over the 12-year, tick …

exploit government guarantees, arbitrage regulatory risk weights, and access central-bank funding, we find that this carry …

taxpayers from potentially destabilizing regulatory arbitrage, central bankers need to develop statistical procedures for …

future short rates. At the same time, because arbitrageurs render the term structure arbitrage-free, demand effects satisfy … no-arbitrage restrictions and can be quite different from the underlying shocks. We show that the preferred-habitat view …

introducing time-dependent parameters to fit arbitrage-free models to selected asset prices. We show, in a simple one … arbitrage-free models should be complemented by close attention to fundamentals, which might include mean reversion, multiple …

A major question in the literature on the classical gold standard concerns the efficiency of international arbitrage … tests of various asset market criteria, including speculative efficiency and interest arbitrage. These studies have suffered …

If experimental subjects arbitrage against market interest rates when making intertemporal allocations of cash, the … arbitrage directly by forcing all transactions with subjects to be instant electronic bank transfers, thus making arbitrage easy … and salient. We also employ four decision frames to test alternative hypotheses. Our evidence contradicts arbitrage …