resulting volatility can induce risk-averse transactors who face transaction costs to desert these markets altogether. Thus … thinness and the consequent price volatility may become joint self-perpetuating features of an equity market, whatever the … volatility of asset fundamentals. If, however, appropriate incentive schemes are adopted to encourage entry of additional …

of stock prices as predictors of future dividends. This paper analyses the relationship between market size and risk as …

. We show that falling risk premia on Spanish housing and non-residential capital, a loosening of collateral constraints …