Template-Type: ReDIF-Paper 1.0

Author-Name: Lutz G. Arnold 
Author-X-Name-First: Lutz G. 
Author-X-Name-Last: Arnold 

Author-Name: Sebastian Zelzner 
Author-X-Name-First: Sebastian 
Author-X-Name-Last: Zelzner 

Title: Welfare Effects of the Allocation of Talent to Financial Trading: What Does the Grossman-Stiglitz Model Say?
	
Abstract: This paper investigates the implications of the Grossman-Stiglitz (1980) model on the informational eficiency of financial markets for the optimality of the allocation of talent to financial trading versus entrepreneurship. Informed traders make the financial market more informationally eficient, entrepreneurs create output and jobs. The model indicates that financial trading attracts too much, rather than too little, talent. 

Length: 56 pages
Creation-Date: 2020-02
File-URL: http://www.bgpe.de/texte/DP/190_Arnold_Zelzner.pdf
File-Format: Application/pdf
File-Function: First version, 2020
Number: 190
Classification-JEL:  G14, J24 
Keywords: : market eficiency, asymmetric information, allocation of talent, occupational choice

Handle: RePEc:bav:wpaper:190_Arnold_Zelzner