Information, Impact, Ignorance, Illegality, Investing, and Inequality

2 Pages Posted: 27 Oct 2016

Date Written: October 25, 2016

Abstract

We note a simple mechanism that may at least partially resolve several outstanding economic puzzles, including why the cyclically adjusted price to earnings ratio of the S&P 500 index has been oddly high for the past two decades, why gains to capital have outpaced gains to wages, and the persistence of the equity premium.

Keywords: Wealth Inequality, Equity Premium, Price Impact, Algorithmic Trading

Suggested Citation

Knuteson, Bruce, Information, Impact, Ignorance, Illegality, Investing, and Inequality (October 25, 2016). Available at SSRN: https://ssrn.com/abstract=2859097 or http://dx.doi.org/10.2139/ssrn.2859097

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