Knowledge that Transforms

[This paper investigates the degree to which a "leading" time series improves the prediction of coincident series. The theory of covariance-stationary processes is used as the theoretical framework and empirical tests dealing with the predictive ability of "leading" series are supplied.]

[The Arrow-Debreu model is extended to include a sequential market model with financial markets. This is done by dropping the contingent contracts from the Arrow-Debreu model, leaving only a sequence of spot markets for commodities. The resulting market structure is inefficient. Efficiency is restored with a sequence of stock markets and option markets. In addition, consumers are shown to be unanimous in wanting each firm to maximize the price of its common stock.]

you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at

A simple test for heteroscedastic disturbances in a linear regression model is developed using the framework of the Lagrangian multiplier test. For a wide range of heteroscedastic and random coefficient specifications, the criterion is given as a readily computed function of the OLS residuals. Some finite sample evidence is presented to supplement the general asymptotic properties of Lagrangian multiplier tests.

[This paper investigates the role of inheritances in the determination of the national distribution of wealth. Assuming that households care both about their own consumption and that of their descendants, we construct a model of family bequest behavior. Then, embedding the model in a simple consumption-loan framework, we study the evolution of the national distribution of wealth. A key generalization of previous work is that we allow bequests to both male and female children so that each family receives two inheritances (one from the husband's parents and one from the wife's). This means the national distribution of wealth develops in a complicated manner depending on mating patterns. Using a fixed-point argument we prove the existence of a stationary distributionof wealth consistent with accurate expectations on the part of all households. We then present a test for uniqueness and several economic characterizations of all possible equilibria.]