• Corpus ID: 56045639

An analysis of the dynamics of efficiency of mutual funds

  title={An analysis of the dynamics of efficiency of mutual funds},
  author={Helena Veiga and Sofia B. Ramos and Jorge E. Gal{\'a}n},
This paper studies the efficiency of a sample of mutual funds that invest in the United States. Estimating a production function using Bayesian stochastic frontier analysis, we find evidence that the underlying technology presents economies of scale both at the fund and firm level. We also find evidence that informational asymmetries affect efficiency. Funds that invest domestically are likely to be more efficient than foreign funds investing in the US. Moreover, an inspection at the… 

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