| 来源类型 | Discussion paper
|
| 规范类型 | 论文
|
| 来源ID | DP1291
|
| DP1291 International Trade in Exhaustible Resources: A Cartel-Competitive Fringe Model |
| Larry Karp; Olli Tahvonen
|
| 发表日期 | 1996-01-30
|
| 出版年 | 1996
|
| 语种 | 英语
|
| 摘要 | In a capitalist economy prices serve to equilibrate supply and demand for goods and services, continually changing to reallocate resources to their most efficient uses. Secondary stock market prices, however, often viewed as the most 'informationally efficient' prices in the economy, have no direct role in the allocation of equity capital since managers have discretion in determining the level of investment. What is the link between stock price informational efficiency and economic efficiency? We present a model of the stock market in which: (i) managers have discretion in making investments and must be given the right incentives; and (ii) stock market traders may have important information that managers do not have about the value of prospective investment opportunities. In equilibrium, information in stock prices will guide investment decisions because managers will be compensated based on informative stock prices in the future. The stock market indirectly guides investment by transferring two kinds of information: information about investment opportunities and information about managers' past decisions. The fact that stock prices only have an indirect role suggests that the stock market may not be a necessary institution for the efficient allocation of equity. We emphasize this by providing an example of a banking system that performs as well. |
| 主题 | Financial Economics
|
| 关键词 | Efficient markets
Managerial incentives
Stock prices
|
| URL | https://cepr.org/publications/dp1291
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
|
| 资源类型 | 智库出版物
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| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/530446
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推荐引用方式
GB/T 7714 |
Larry Karp,Olli Tahvonen. DP1291 International Trade in Exhaustible Resources: A Cartel-Competitive Fringe Model. 1996.
|
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