The presence of purchasing power parity is often attributed to the exploitation of arbitrage opportunities in goods … limited support for a simple arbitrage view. The deviations of real exchange rates and trade from trend are virtually … reversion. Both may, of course, reflect expectations of trade responses, opening an indirect role for incipient arbitrage in …

A major question in the literature on the classical gold standard concerns the efficiency of international arbitrage … and interest arbitrage. These studies have suffered from many limitations, both methodological and empirical. We offer a … new methodology for measuring market integration, based on a theoretical model of arbitrage applicable to any type of …

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 …

In traditional models, arbitrage in a given security is performed by a large number of diversified investors taking … small positions against its mispricing. In reality, however, arbitrage is conducted by a relatively small number of highly … specialized investors who take large positions using other people's money. Such professional arbitrage has a number of interesting …

accomplished is arbitrage. A privately informed trader will engage in costly arbitrage, that is, trade on his knowledge that the …

The federal tax code creates strong incentives for tax arbitrage activity on the part of state governments. This … arbitrage activity is illegal and previous research has typically assumed that the constraint against arbitrage activity is … Reform Act of 1986 which made even greater efforts to curb arbitrage activity is likely to be ineffective …