leads to significantly larger agricultural investment and riskier production choices in agriculture. The salient constraint … to farmer investment is uninsured risk: when provided with insurance against the primary catastrophic risk they face … basis risk associated with the index insurance, and with imperfect trust that promised payouts will be delivered. …

The paper studies the role of risk arbitrage in takeover contests. We show that arbitrageurs have an incentive to …

in a standard framework in which uninformed traders with hedging needs interact with risk-averse informed traders in … hedging and speculative demands: risk-averse arbitrageurs can hedge in the new market to lower the risk of speculative … argued here is that a risk-averse informed trader who believes an asset to be mispriced will typically be able to reduce the …

making investments today and waiting for arbitrage opportunities in future is the combination of occasional fire sales and … fire sales in other types that are fundamentally unrelated, provided arbitrage activity in these investments is sourced …

suppliers to the risk of being picked off by arbitrageurs. Hence, more frequent toxic arbitrage opportunities and a faster …High frequency arbitrage opportunities sometimes arise when the price of one asset follows, with a lag, changes in the … triangular arbitrage opportunities in the FX market. In our sample, a 1% increase in the likelihood that a toxic arbitrage …

We develop a model of financially constrained arbitrage, and use it to study the dynamics of arbitrage capital … the dynamics of arbitrage activity are self-correcting: following a shock that depletes arbitrage capital, profitability … trades, although arbitrageurs cut their positions in these trades the least. When arbitrage capital is more mobile across …

importance of regulatory arbitrage as a driver of cross-border bank flows since the global financial crisis. However, in the euro … area, arbitrage in capital stringency was linked to lower cross-border lending since the crisis. …

This paper considers arbitrage pricing of bonds and the determination of interest rates in the European Currency Unit … existing member currency assets and the member currencies' exchange rates. Using the technical apparatus of arbitrage pricing … theory it is shown how the fundamental arbitrage pricing relationships implied by the derivative character of the ecu have to …