We study voluntary information exchange widely observed among traders in financial markets. In the context of a standard market microstructure model, based on Kyle (1984, 1985), we show that disparately informed traders are better off by exchanging information provided that they are risk averse...

We develop a multi-period general equilibrium model of bank deposit, credit, and interim inter-bank loan markets in which banks initially specialize in their choices of debtors, leading to underdiversification, but nevertheless become entwined via inter-bank markets, leading to the fortunes of...

Despite the central importance of investors to all IPO theories, relatively little is known about their role in practice. In this paper we survey institutional investors about how they assess IPOs, what information they provide to the investment banking syndicate, and the factors they believe...

In the ECB Financial Stability Review (December, 2005, p.131), it is stated bluntly that there is no obvious framework for summarising developments in financial stability in a single quantitative manner. This is, to say the least, a considerable disadvantage when attempting to analyse financial...

ABSTRACT: Real wages in Ghana have fallen substantially over the last twenty years. The question posed by this paper is whether this evidence for wage flexibility implies a competitive market clearing labour market. It is argued that it does not. There is sufficient flexibility in the production...

Constructing an agricultural output series requires a rational economic basis on which to convert one crop into another, and a conversion method using only the information which we have at our disposal. The traditional method fails on both counts. We develop two alternative methods. The first is...

Several studies in developed economies have reported that the rate of growth of small firms decreases with firm age as well as size. The result is consistent with Jovanovic`s (1982) version of the passive learning model of competetive selection and is confirmed by data on a random sample of...

It was found in this paper that (i) because of the high degree of openness of the Namibian economy and its small size, the use of nominal exchange rate as an instrument of adjustment will have limited effects; (ii) that the costs associated with the loss of monetary autonomy are small; and (iii)...