Publications of Paul Woolley

Most of us have been brought up to believe that free markets combined with healthy competition deliver good outcomes. We also presume that what holds...

HFT has its benefits but also poses potential systemic risks. Bruno Biais and Paul Woolley discuss the need for deft regulation.

According to classical economics, there are no gains to be made in an efficient market. Yet markets are often far from efficient and the gains are...

We study flows between investment funds and their effects on asset prices in a simple twoperiod version of Vayanos and Woolley (2010, VW). As in VW...

We propose a rational theory of momentum and reversal based on delegated portfolio management. Flows between investment funds are triggered by changes...

We offer a rational expectations model of the dynamics of innovative industries. The fundamental value of innovations is uncertain and one must learn...

This chapter offers a new understanding of how financial markets work. The key departure from conventional theory is to recognize that investors do...

How does economic theory need to adjust in light of the global financial crisis? This column presents a new insight on how innovation leads to rent...

We study flows between investment funds and their effects on asset prices in a simple two-period version of Vayanos and Woolley (2010, VW). As in VW...

Have capital market booms and crashes discredited the efficient market hypothesis? This column says yes and suggests a new model that explains asset...

We study innovative industries subject to two risks. First, it is uncertain whether the innovation is strong or fragile. Second, it is difficult to...

This paper is no longer available, the revised version of this paper can be found as Paul Woolley Centre Paper 4, FMG Discussion Paper 632

We propose a rational theory of momentum and reversal based on delegated portfolio management. Flows between investment funds are triggered by changes...