rule limits arbitrage opportunities by restricting associated interest expense deductions. Prior to 1986, U.S. banks were … absence of a tax benefit from arbitrage appears not only in observed bond yields, but also in banks' considerable unused …

that (1) strong arbitrage leads to an elastic Treasury market and a steeply downward-sloping term structure of market …

A major question in the literature on the classical gold standard concerns the efficiency of international arbitrage … tests of various asset market criteria, including speculative efficiency and interest arbitrage. These studies have suffered …

, even though it appears that the open-end form can be a serious impediment to arbitrage. I argue that the equilibrium degree …-suited to undertaking certain types of arbitrage trades. One implication of the analysis is that, even absent short …

In this paper, we investigate empirically the well-known put-call parity no-arbitrage relation in the presence of short …

arbitrage directly by forcing all transactions with subjects to be instant electronic bank transfers, thus making arbitrage easy …If experimental subjects arbitrage against market interest rates when making intertemporal allocations of cash, the … and salient. We also employ four decision frames to test alternative hypotheses. Our evidence contradicts arbitrage …

vehicles such as mutual funds and index futures. Because ETFs rely on arbitrage activity to synchronize their prices with the …

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 …

and limited arbitrage. Our theory predicts that these two elements can generate a systematic price premium. We test the … behavior are consistent with the model. Finally, we quantify the welfare effects of arbitrage using a structural model. In our … setting, we show that full arbitrage is not necessarily welfare-enhancing in the presence of market power, reducing consumer …