Value of information in competitive economies with incomplete markets
A substantial literature addresses the negative effect on welfare of the release of information in a competitive market economy. We show that the...
Efficiency properties of rational expectations equilibria with asymmetric information
In this paper we provide a characterisation of the welfare properties of rational expectations equilibria of economies in which, prior to trading...
Informed Trading, Investment, and Welfare
This paper studies the welfare economics of informed trading in a stock market. We provide a model in which all agents are rational and trade either...
Should Speculators be Taxed?
A number of economists have supported the taxation of speculation in financial markets. We examine the welfare economics of such a tax in a model of...
Speculative Securities
A speculative security is an asset whose payoff depends on a random shock uncorrelated with economic fundamentals (a sunspot) about which some traders...
