A Methodological Note on Measuring the Functional Efficiency of Capital Markets
AbstractWe apply the accelerator principle to measure the functional efficiency of capital markets. We estimate the elasticity of capital with respect to output using a panel of firms across 44 countries, and compare the results with existing approaches. Furthermore, we correlate our measure with corporate governance institutions.
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Bibliographic InfoPaper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 132.
Length: 11 pages
Date of creation: 09 Jun 2008
Date of revision:
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Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Phone: +46 8 790 95 63
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More information through EDIRC
Allocation of capital; accelerator principle; functional efficiency;
Other versions of this item:
- Eklund, Johan E. & Desai, Sameeksha, 2008. "A Methodological Note on Measuring the Functional Efficiency of Capital Markets," Ratio Working Papers 121, The Ratio Institute.
- C00 - Mathematical and Quantitative Methods - - General - - - General
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- P00 - Economic Systems - - General - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-06-21 (All new papers)
- NEP-CFN-2008-06-21 (Corporate Finance)
- NEP-FMK-2008-06-21 (Financial Markets)
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