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 The Ratio Institute in its series Ratio Working Papers with number 121.
Length: 10 pages
Date of creation: 12 May 2008
Date of revision:
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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," Working Paper Series in Economics and Institutions of Innovation 132, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- 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
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