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AGGREGATION ACROSS HETEROGENEOUS DEPOSITORY INSTITUTIONS
Author(s) -
Gooptu Sudarshan,
Lombra Raymond
Publication year - 1987
Publication title -
financial review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.621
H-Index - 47
eISSN - 1540-6288
pISSN - 0732-8516
DOI - 10.1111/j.1540-6288.1987.tb01260.x
Subject(s) - presumption , intermediary , financial intermediary , set (abstract data type) , business , constant (computer programming) , economics , monetary economics , accounting , financial system , finance , computer science , political science , law , programming language
Financial models usually proceed “as if” aggregation across heterogeneous financial intermediaries suppresses little information. The presumption is that the relevant set of relative yields remains essentially constant over time across intermediaries. Drawing on the fact that objective functions differ across intermediaries, we present theoretical evidence and data that question standard practice and suggest proceeding “as if” such differences exist and matter.