Over the course of U.S. history there have been a small number of occasions in which aggregate nominal spending has declined, the most recent of which occurred during the recession that began in December 2007. Coincident with these observed declines in nominal spending are declines in the...

This paper tests a smart money-noise trader model directly by seeing how well its predictions match the behavior of actual investors.

This article provides an overview of the empirical evidence on the magnitude and determinants of equity trading costs. The focus is primarily on the trades of institutional investors.

In Razin, Sadka and Yuen (1998, 1999a), we explored the policy implications of the home-bias in international portfolio investment as a result of asymmetric information problems in which domestic savers, being "close" to the domestic market, have an informational advantage over foreign portfolio...

We consider a model in which all investment opportunities are decribed in termes of cash flows. Our investment opportunities as assumed to be very general: they don't necessarily involve two dates and are not specifically related to a market model.

Insurance companies have significant net flows of cash, stemming especially from insurance premiums paid by clients. These funds are an important source of stable funding for public authorities, SMEs, banks and other companies. In this article we present the dimensions of funds held by insurance...

This paper presents a simulation of a global investment strategy that combines diversification and option strategies, in particular the covered call strategy, on the Swiss Exchange.

Bank-created money, shadow-bank money, and Treasury bonds all satisfy investor's demand for a liquid transaction medium and safe store of value. We measure the quantity of these three forms of liquidity and their corresponding liquidity premium over a sample from 1926 to 2016. We empirically...