that (1) strong arbitrage leads to an elastic Treasury market and a steeply downward-sloping term structure of market …

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 …

, even though it appears that the open-end form can be a serious impediment to arbitrage. I argue that the equilibrium degree …-suited to undertaking certain types of arbitrage trades. One implication of the analysis is that, even absent short …

In this paper, we investigate empirically the well-known put-call parity no-arbitrage relation in the presence of short …

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 …

vehicles such as mutual funds and index futures. Because ETFs rely on arbitrage activity to synchronize their prices with the …

We develop a model of financially constrained arbitrage, and use it to study the dynamics of arbitrage capital … the dynamics of arbitrage activity are self-correcting: following a shock that depletes arbitrage capital, profitability … trades, although arbitrageurs cut their positions in these trades the least. When arbitrage capital is more mobile across …

and limited arbitrage. Our theory predicts that these two elements can generate a systematic price premium. We test the … behavior are consistent with the model. Finally, we quantify the welfare effects of arbitrage using a structural model. In our … setting, we show that full arbitrage is not necessarily welfare-enhancing in the presence of market power, reducing consumer …

Limits to arbitrage play a central role in behavioral finance. They are thought to interfere with arbitrage processes … innovation that allows limits to arbitrage to be sidestepped, and overvaluation thereby to be corrected, even in settings … innovation that allows the arbitrageurs to sidestep limits to arbitrage involves credibly revealing their information to the …