Policymakers face time and resource constraints in investigating issues and formulating policies. How do these constraints affect information transmission by informed but biased interest groups? We study this question using a model in which interest groups lobby a policymaker by offering...

We provide a general characterization of the structure of rational expectations equilibria of any degree of revelation for pure exchange, sequential economies, with deffinitely many states of private information, an incomplete financial market and nominal assets. We estimate the dimension of the...

This paper considers the role of foreign investors in developed-country equity markets. It presents a quantitative model of trading that is built around two new assumptions: (i) both the foreign and domestic investor populations contain investors of different sophistication, and (ii) investor...