but systematic mispricing is not. The theory is consistent with several empirical findings regarding the cross-section of …

We develop a theory of stock-market crashes based on differences of opinion among investors. Because of short …

The price-amenity arbitrage is a cornerstone of spatial economics, as the response of land and house prices to shifts … amenities. With informational, time, and cash constraints, households' ability to arbitrage across locations with different …

that CIP violations imply arbitrage opportunities only if uncollateralized interbank lending rates are riskless. In the … absence of observable riskless discount rates, we extract them empirically using a simple no-arbitrage framework. They deliver …-currency basis swap rates well. The no-arbitrage benchmarks account for about two thirds of the alleged CIP deviations, while the …

. Focusing in particular on arbitrage opportunities, I construct an "externality-mimicking portfolio" whose returns track the …

We survey theoretical developments in the literature on the limits of arbitrage. This literature investigates how costs …

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 …

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

across locations. Since the spatial no arbitrage condition is inherently imprecise, other economists have turned to different … no arbitrage conditions, such as the prediction that individuals must be indifferent between owning and renting. This … paper argues the predictions from these non-spatial, financial no arbitrage conditions are also quite imprecise. Owned homes …