This paper introduces the indexing paradox, which states that it if all investors are rational with rational expectations and have a common risk-averse investment performance measure, then no investor can expect to do better than the market. If the cost of indexing is less than the cost of...

We investigate the quality of public and private information environments between Western European or Eastern European firms. We find that the quality of private information is higher for Eastern European than for Western European firms and the quality of public information is higher for Western...

The present paper is an empirical study, the goal of which is to determine the strength of various arguments that have been used to justify tax evasion and to determine whether results differ based on certain demographic variables. A survey instrument was constructed using a seven-point Likert...

Budgets are commonly used for multiple purposes. Whereas planning budgets reflect organisations' 'best guesses' of future events, control budgets are intended to motivate high levels of effort. Budgetary control mechanisms modelled in a principal-agent setting typically find that the use of such...

Inflation-indexed bonds, such as the UK's indexed-linked gilts and Canada's real return bonds, are hailed by economists for reducing inflation risk to both borrowers and lenders. However, we find that fixed-rate bonds have an advantage over inflation-indexed bonds by providing borrowers with a...

In stark contrast to the previous literature, we find that IT leads to price indeterminacy even when the central bank uses a Taylor-like feedback rule to peg the nominal interest rate. We also find that there is no mechanism with IT to determine the current inflation rate or price level. We...