The purpose of this paper is to study whether speculative activities are ethically justified. The importance of this topic derives from the fact that many of the activities which configure a modern economy contain a speculative component. The analysis is based on the premise that the ethical...

We consider simple models of financial markets with regular traders and insiders possessing some extra information hidden in a random variable which is accessible to the regular trader only at the end of the trading interval. The problems we focus on are the calculation of the additional utility...

This paper reexamines the Equity Premium Puzzle for the German stock market with control for inflation and taxation. Two methods for relaxing the assumption of aggregate consumption being equal to aggregate dividends are compared: the leverage approach and the usage of a bivariate stochastic...