کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
986614 1480907 2011 11 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Why falling information costs may increase demand for index funds
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
Why falling information costs may increase demand for index funds
چکیده انگلیسی

Falling information costs may give the perverse incentive to buy less information in equilibrium. Using a model similar to Admati and Pfleiderer (1988) but with a market that clears via an equilibrium condition, it is shown that passive investment may actually rise with lower information costs. This is consistent with the empirical observation that index investing has increased along with a decline in information costs. Also, in absence of such costs, no investor will hold index portfolios if at least some uninformed investors can condition on current prices. The existence of passive index investors may therefore be inconsistent with unrestricted observation of current prices.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Review of Financial Economics - Volume 20, Issue 1, January 2011, Pages 37–47
نویسندگان
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