We are happy to invite you to the research seminar by the Center for Economic Expertise. On March 7th Junghum Park will present the topic „Feedback Effects, Market Valuations, and Real Efficiency” in 417 room and MS Teams.
Brief overview of the seminar
This paper studies the interdependence of myopic corporate behavior and the so-called feedback effect, where financial prices contain useful information for corporate decision making. We model the feedback effect in a mostly standard trading environment, except that the existence of equilibrium and its tractable analysis are ensured by Pareto distribution of productivity. The analysis shows that the feedback effect causes a price inflation and the resulting long-term inefficiency, which can be understood in the context of innovation strategies. This illustrates a challenge in extending the argument on the informational role of financial markets to the long-term productive efficiency.
Information on the seminar
- Time: March 7, 14:00-15:00
- Venue: Faculty of Economics and Business Administration, Vilnius University, Saulėtekio al. 9, Vilnius, 417 room and MS Teams Click here
- Presenter: Junghum Park, Research Fellow
- Topic: „Feedback Effects, Market Valuations, and Real Efficiency”
- Working language: English
The seminar is open to all - students, teachers, researchers. We invite you to learn more!