On the neutrality of socially responsible investing: The general equilibrium perspective

• 成果类型: Article
• 署名作者: Arnold, Lutz G. G.
• 署名单位: University of Regensburg
• 刊物名称: THEORETICAL ECONOMICS
• ISSN/ISSBN: 1933-6837
• DOI: 10.3982/TE4719
• 发表日期: 2023-01-01
• 页码: 65-95
• 关键词: Socially responsible investing; general equilibrium; market incompleteness; D51; D52; D53; G13; M14

摘要

This paper investigates the conditions under which socially responsible investment (SRI) is neutral from the viewpoint of general equilibrium theory. Three conditions are jointly sufficient for neutrality of SRI. First, the financial market is complete and SRI does not compromise the spanning opportunities it provides. Second, consumers' rankings of consumption bundles are unaffected by their asset holdings. Third, firms maximize shareholder value. Under an additional assumption that is satisfied, e.g., if SRI takes the form of negative screening, the taxes and transfers needed to implement a Pareto-optimal allocation are the same as in the absence of SRI. SRI is neutral despite financial market incompleteness if there are perfect substitutes for targeted stocks.