In the last years equity exchanges have diversified their operations into business areas such as derivatives trading, posttrading services, and software sales. Securities trading and post-trading are subject to economies of scale and scope. The integration of these functions into one institution ensures efficiency by economizing on transactions costs. Using balanced panel data from major equity...

We study the optimal observability of the tax base within the standard linear income tax problem, where observability is determined by the government’s investment into the accurate measurement of the tax base. We characterize the optimal level of observability and derive a new expression for the optimal progressivity, which – in addition to the standard equity efficiency trade-off – accounts fo...

Abstract Developing countries coalitions form an integral part of tariff negotiations that take place under the aegis World Trade Organization. While there was only a single coalition in 70s, their number increased to 31 year 2005. Despite apparent proliferation negotiations, little research on theoretical and empirical implications has been produced. In particular, we lack understanding effici...

This experiment investigates the social preferences and choices of economists and physicians for treating patients and compares the choices with those in a congruent neutrally framed allocation problem. The potential recipients differ with respect to their minimum needs as well as to their ability to profit from the receipt. Using the theoretical solutions, we classify the distributors as selfi...

This study examines the performance of actively managed Australian equity funds and the extent to which both fund size and manager size is related to risk-adjusted returns. Larger investment managers, by definition, engage in higher trade volume. The literature documents that transaction costs and trade difficulty increase with trade size, given difficulties associated with ‘large’ trades and t...