A Puzzle of Microstructure Market Maker Models /

This study addresses the empirical viability of microstructure models of dealer price setting. New evidence is presented rejecting these models' specifications of how information asymmetry and inventory accumulation affect dealer pricing. This rejection is consistent with those of other dealer-...

पूर्ण विवरण

ग्रंथसूची विवरण
मुख्य लेखक: Romeu, Rafael
स्वरूप: पत्रिका
भाषा:English
प्रकाशित: Washington, D.C. : International Monetary Fund, 2004.
श्रृंखला:IMF Working Papers; Working Paper ; No. 2004/006
ऑनलाइन पहुंच:Full text available on IMF
विवरण
सारांश:This study addresses the empirical viability of microstructure models of dealer price setting. New evidence is presented rejecting these models' specifications of how information asymmetry and inventory accumulation affect dealer pricing. This rejection is consistent with those of other dealer-level empirical studies. This study suggests a new modeling option may be to reconsider optimal price setting while relaxing assumptions that specify incoming orders as the only component through which dealer inventories evolve. This approach is consistent with inventory evolution data and with general equilibrium models' assumptions about currency markets.
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भौतिक वर्णन:1 online resource (24 pages)
स्वरूप:Mode of access: Internet
आईएसएसएन:1018-5941
अभिगमन:Electronic access restricted to authorized BRAC University faculty, staff and students