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Financial Super-Markets: Size Matters for Asset Trade Author info | Abstract | Publisher info | Download info | Related research | Statistics Philippe Martin (CERAS-ENPC, Paris, & CEPR)
H=E9l=E8ne Rey= (London=20 School of Economics & CEPR)
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registered author(s):
This paper presents a new theoretical framework to analyze=20 financial markets in an international context. We build a two-country=20 macroeconomic model in which agents are risk averse, assets are imperfect=20 substitutes, the number of financial assets is endogenous, and cross-border= =20 asset trade entails transaction costs. We show that demand effects have=20 important implications for the link between market size, asset prices and=20 financial market development. These effects are consistent with the=20 existing empirical evidence. Due to co-ordination failures, the extent of=20 financial market incompleteness is inefficiently high. We also analyze the= =20 impact of domestic transaction costs and issuing costs on financial markets= =20 and returns.
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Paper provided by EconWPA in its series International Finance with number
0012001.
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Length: 28 pages
Date of creation: 09 Feb 2001Date of revision:
Handle: RePEc:wpa:wuwpif:0012001Note: 28 pages, Acrobat .pdfContact details of provider: Web page: http://129.3.20.41
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Article Paper Martin, Philippe & Rey, Hélène, 1999.
"Financial Super-Markets: Size Matters for Asset Trade ,"
CEPR Discussion Papers
2232, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) P Martin & H Rey, 2000.
"Financial Super-Markets: Size Matters for Asset Trade ,"
CEP Discussion Papers
0450, Centre for Economic Performance, LSE.
[Downloadable!] Philippe Martin & Hélène Rey, 2006.
"Financial Super-Markets: Size Matters for Asset Trade ,"
Center for International and Development Economics Research, Working Paper Series
1012, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
[Downloadable!] Philippe Martin & Helene Rey, 2001.
"Financial Super-Markets: Size Matters for Asset Trade ,"
NBER Working Papers
8476, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Philippe Martin and Hélène Rey., 2000.
"Financial Super-Markets: Size Matters for Asset Trade ,"
Center for International and Development Economics Research (CIDER) Working Papers
C00-110, University of California at Berkeley.
[Downloadable!] Find related papers by JEL classification: F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies G1 - Financial Economics - - General Financial Markets G12 - Financial Economics - - General Financial Markets - - - Asset Pricing
This paper has been announced in the following NEP Reports :
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