The price of skill: Performance evaluation by households

Skilled investors make money off uninformed investors. By acting as intermediaries, they provide a hedge to the uninformed investors themselves. I present a model in which households have imperfect information about expected returns. Non-traded income shocks lead them to rebalance, sometimes at the wrong time. Active funds hedge this risk by trading on superior information. In equilibrium, they pay off when non-traded income disappoints, earning a premium that makes them appear to underperform index funds after fees. Empirical results using aggregate fund flows support the model. A corresponding asset pricing test can account for the apparent underperformance of active funds.     

How are social origin,destination and mobility linked to physical,mental, and self-rated health? Evidence from the United States

Quality & Quantity - For decades, scholars have been exploring persistent inequalities in health by studying the roles of origin and destination socioeconomic positions (SEP), and the...     

Adjustment in Eastern Europe to EU environmental requirements

The economic reforms taking place in Eastern Europe have in many respects an unfavourable influence on environmental protection. The adjustment of Eastern Europe to the environmental requirements of the European Union necessitates far-reaching changes in the very philosophy of transition, towards more balanced and reasonable approaches and adequate environmental taxation.