The conclusions here seem to be based on a) a purely passive market, and b) a static amount of capital. I’d like to see an analysis that offsets the potential

The conclusions here seem to be based on a) a purely passive market, and b) a static amount of capital. I’d like to see an analysis that offsets the potential inefficiency of a partially passive market with the gains to the economy from additional capital being available to invest. Are we better or worse off with a market that is n% less efficient, but that has y% more capital from passive investors than a purely active market would have?