Costs and benefits of speculation

dc.contributor.author	Lensberg, Terje
dc.contributor.author	Schenk-Hoppé, Klaus Reiner
dc.contributor.author	Ladley, Daniel
dc.date.accessioned	2013-03-12T12:35:41Z
dc.date.available	2013-03-12T12:35:41Z
dc.date.issued	2012-10
dc.identifier.issn	1500-4066
dc.identifier.uri	http://hdl.handle.net/11250/164189
dc.description.abstract	We quantify the effects of financial regulation in an equilibrium model with delegated portfolio management. Fund managers trade stocks and bonds in an order-driven market, subject to transaction taxes and constraints on short-selling and leverage. Results are obtained on the equilibrium properties of portfolio choice, trading activity, market quality and price dynamics under the different regulations. We find that short- sale restrictions reduce short-term volatility and long swings in asset prices, while transaction taxes do more harm than good.	no_NO
dc.publisher	Norwegian School of Economics. Department of Finance and Management Science	no_NO
dc.relation.ispartofseries	Discussion paper;2012:12
dc.subject	financial regulation	no_NO
dc.subject	portfolio management	no_NO
dc.subject	market microstructure	no_NO
dc.title	Costs and benefits of speculation	no_NO
dc.type	Working paper	no_NO
dc.subject.nsi	VDP::Social science: 200::Economics: 210::Business: 213	no_NO