Bill Janeway

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Indeed, I do share Kay ́s basic diagnosis that economic theory has taken a profoundly wrong path (in fact I will add few further critical comments on the point ). And I believe the fault is precisely at the core of the paradigm so well summarized by Gary Becker (1976), cited by Kay: “the combined assumptions of maximazing behavior, market equilibrium and(More)
This paper develops a model to explain the widely used investment mandates in the institutional asset management industry based on two insights: First, giving a manager more investment ‡exibility weakens the link between fund performance and his e¤ort in the designated market, and thus increases agency cost. Second, presence of tail risk (i.e., an asset(More)
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