elroy dimson market efficiency

Dimson & Mussavian – A Brief History of Market Efficiency

“The concept of efficiency is central to finance. Primarily, the term efficiency is used to describe a market in which relevant information is impounded into the price of financial assets. This is the primary focus of the articles reviewed here. Sometimes, however, economists use this word to refer to operational efficiency, emphasising the way resources are employed to facilitate the operation of the market. Most of this review is concerned with the former definition, namely the informational efficiency of financial markets. At the end of this paper, we also consider the microstructure of financial markets.

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