منابع مشابه
Investor Naïveté and Asset Prices
This paper describes strategic behavior in a nonequilibrium model of asset pricing with heterogeneous sophistication. Both risk and return are increasing in the naïveté of investors in the market. Optimal investment involves considering the effect that naïve investors have on the market. Further, we derive a simple characterization of the asset price dynamics that results from an arbitrary comb...
متن کاملInvestor Protection and Asset Pricing∗
Corporations in most countries are run by controlling shareholders, who have substantially smaller cash flow rights than their control rights in the firm. This separation of ownership and control allows the controlling shareholders to pursue private benefits at the cost of outside minority investors by diverting resources away from the firm and distorting corporate investment and payout policie...
متن کاملBanking and Asset Prices ∗
We embed the notion of banks as monitors into a “two trees” framework, and consider how resources are optimally allocated between an intermediated banking sector and a risky sector, given that capital moves sluggishly between the two. We characterize equilibrium as a function of the relative size of the banking sector — the bank share — and the speed at which capital can move in and out of that...
متن کاملSecuritization and Asset Prices∗
During the 15 years prior to the global financial crisis the volume of securitized assets transacted in the US has grown substantially, reflecting a change in the nature of the financial intermediation process. Together with increased securitization, financial entities, who participate more heavily in the asset-backed security (ABS) market and hold a diversified portfolio of assets, have also b...
متن کاملLiquidity and Asset Prices *
We broadly define liquid assets, or monetary assets, as any asset that can be readily sold in the market and can be held by a number of people in succession before maturity. We ask in what environment is the circulation of liquid assets essential for the smooth running of the economy. By developing a canonical model of a monetary economy (i.e., where the circulation of liquid assets is essentia...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2016
ISSN: 1556-5068
DOI: 10.2139/ssrn.2742961