Title: MEASURING MARKET EFFICIENCY: A COMPARATIVE STUDY ⁄
Abstract: Economic theory and empirical research indicate that market efficiency has a major impact on a country's economic performance. Such efficiency is particularly important for small states like Malta which tend to be highly exposed to external shocks. This paper presents a method for constructing a composite index of market efficiency with particular reference to the goods market, the labour market and the financial market. This method is applied to measure market efficiency for 26 European countries. Scores and rankings for each country are computed. The results suggest that market efficiency has positive relationships with GDP per capita and with economic resilience. This study also indicates that labour market efficiency tends to be negatively associated with unemployment rates. More rigorous analysis of the relationships mentioned should shed more light in the causality of these variables.
Publication Year: 2008
Publication Date: 2008-01-01
Language: en
Type: article
Access and Citation
Cited By Count: 5
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot