Abstract In this paper, we describe how agency frictions in asset management can generate prime violations of the Efficient Markets Hypothesis, such as momentum, value and an inverted risk-return relationship. Momentum our theory is associated with procyclical fund flows price over-reaction, more pronounced for overvalued assets. The investors who momentum are losing from it those requiring the...

this study examines technical efficiency in iran's banking system using unbalanced panel data for 17 state and private banks during the 1997-2009 period. therefore, technical efficiency of banks was measured through estimating a translog cost function in the form of a panel sfa error compound model. then, the effect of underlying factors including both individual and structural (ownership/...

We study efficiency and budget balance for designing mechanisms in general quasi-linear domains. Green and Laffont (1979) proved that one cannot generically achieve both. We consider strategyproof budget-balanced mechanisms that are approximately efficient. For deterministic mechanisms, we show that a strategyproof and budget-balanced mechanism must have a sink agent whose valuation function is...

This paper develops an endogenous growth model with labor market matching and technology adoption. While labor market search and entry frictions lengthen technology diffusion, exogenous technology arrival may creatively destruct jobs in the short run. Such interrelationships give rise to multiple equilibria (global and local indeterminacy) under which a small autonomous technological improvemen...

Credit constraints that link a private agent’s debt to market-determined prices embody a credit externality that drives a wedge between competitive and constrained socially optimal equilibria, inducing private agents to “overborrow.” The externality arises because agents fail to internalize the price effects of additional borrowing when the credit constraint binds. We quantify the effects of th...

This chapter presents motivation and definitions for quantifying the inefficiency of equilibria in noncooperative games. We illustrate the basic concepts in four fundamental network models, which are studied in depth in subsequent chapters. We also discuss how measures of the inefficiency of equilibria can guide mechanism and network design.

This article introduces a dynamic stochastic frontier analysis (SFA) framework with unobserved heterogeneity, persistent and transient inefficiency effects, based on recent advances in the SFA literature. The newly developed model is applied sample of French crop-livestock farms. estimates provide useful insights for estimation technical efficiency scores as well associations contextual drivers...