Insider Trading: Should It Be Prohibited?
用理性预期模型分析内幕交易对股价、投资、市场流动性和福利的影响，发现内幕交易可能提高股价和投资但降低流动性，总福利变化取决于经济环境，并指出了支持禁止内幕交易的因素。
Insider trading moves forward the resolution of uncertainty. Using a rational expectations model with endogenous investment level, the author shows that, when insider trading is permitted, (1) stock prices better reflect information and will be higher on average, (2) expected real investment will rise, (3) markets are less liquid, (4) owners of investment projects and insiders will benefit, and (5) outside investors and liquidity traders will hurt. Total welfare may increase or decrease depending on the economic environment. Factors that favor the prohibition of insider trading are identified. Copyright 1992 by University of Chicago Press.