In this research paper, attempt has been made to explore the relation especially the causal relation between stock market index i.e. BSE Sensex and three key macro economic variables of Indian economy by using correlation, unit root stationarity tests and Granger causality test. Monthly data has been used from April,1995 to March, 2009 for all the variables, like, BSE Sensex, wholesale price in...

Rural industrial development in Beijing suburban area has experienced a rapid growth since economic reforms. The spatial pattern of rural industrial development has been influenced by location factors that reflect market forces and government policies. Using GIS, this paper reveals an unbalanced spatial pattern of rural industrial development, and analyzes relationship between rural industrial ...

Previous research suggests that a decline in transactions costs leads to improved economic efficiency. In this paper, we show that such a decline will introduce increasingly uninformed consumers into established markets. Using a model of financial market inefficiency, we show that this increase in uninformed individuals can increase market risk (volatility), can decrease efficiency, and may red...

This paper analyzes the effects of information leakage on trading behavior and market efficiency. It shows that a trader who receives a leaked signal prior to a public announcement can exploit this private information twice. First, when he receives his signal, and second, at the time of the public announcement. The latter effect occurs because he can best infer the extent to which his informati...

We introduce a mathematical theory called market connectivity that gives concrete ways to both measure the efficiency of markets and find inefficiencies in large markets. The theory leads to new methods for testing the famous efficient markets hypothesis that do not suffer from the joint-hypothesis problem that has plagued past work. Our theory suggests metrics that can be used to compare the e...

S search is the mechanism whereby advertisers pay a fee to Internet search engines to be displayed alongside organic (nonsponsored) web search results. Based on prior literature, we draw an analogy between these markets and financial markets. We use the analogy as well as the key differences to present a theoretical framework consisting of a set of research questions about the pricing of keywor...

The framework rules within which either market or political activity takes place must be classified in the non-partitionability set under the Samuelson taxonomy. Therefore there is nothing comparable to the profit-loss dynamic of the market that will insure any continuing thrust toward more desirable rules. ‘Public choice’ has at least partially succeeded in getting economists to remove the rom...

We develop a two-period general equilibrium model of portfolio delegation with competitive, differentially skilled managers and convex compensation contracts. We show that convex incentives lead to significant equilibrium mispricing, but reduce price volatility. In particular, price informativeness and volatility may exhibit opposite behaviour. Investors do not internalize the externality that ...

In the empirical literature on capital market efficiency, the hypothesis that futures price is an unbiased predictor of the future spot price has been one of the most controversial topics among the researchers, analysts and academicians. The study of the efficiency of the futures market is significant in an emerging market like India as futures market serves the most important functions of comp...