A. D. Owen, A Proof that Both the Bias and the Mean Square Error of the Two-Stage Least Squares Estimator are Monotonically Non-Increasing Functions of Sample Size, Econometrica, Vol. 44, No. 2 (Mar., 1976), pp. 409-411

Kendall, M. G., and A. Stuart, Advanced Theory of Statistics, Vol. 2 (London: Charles Griffin, 1961). Labys, W. C., and C. W. J. Granger, Speculation, hledging and Price Forecasts (Lexington, Mass.: Heath Lexington, 1970). Samuelson, P. A., Proof that Properly Anticipated Prices Fluctuate Randomly, Industrial Mana-gement Review, 6 (Spr. 1965), 41-49. Stevenson, R. A., and R. M. Bear, Commodity Futures: Trends or Random Walks?, Journal of Finance, XXV (Mar. 1970), 65-81. Telser, L. G., The Supply of Speculative Services in Wheat, Corn and Soybeans, Food Research Institute Studies, VII, Supplement (1967), 131-176.

IN this paper an attempt is made to ascertain the determinants of the demand for international reserves by the monetary authorities of the less developed countries (LDCs).' An important aim of the paper is to improve on the specifications of the demand-for-reserve functions that exist in the literature.2 The model presented improves on existing ones in many respects, including (i) the concepts of actual and optimum reserves are differentiated and the relationship between them rigorously specified; (ii) the determinants of the optimum level of international reserves are obtained by maximizing an intertemporal, stochastic macroeconomic model;3 (iii) an expected export earnings variable is estimated and used as an explanatory variable; and (iv) distributed lag adjustment is introduced. In the next section a modified partial adjustment model is specified. The equation to be estimated has a second-order lag scheme. In section III the estimation methods and data sources are discussed. Estimation of the demand function is done in two steps: first, export earnings functions are estimated for the twentynine LDCs in the sample during 1950-1969. From these, we obtain two variables expected export earnings and an export instability index to use with others in the cross-country equation. Next, a country cross-section regression analysis is carried out for 1970. Steadystate elasticities are calculated and the results are discussed.

A. R. Pagan, D. F. Nicholls; Exact Maximum Likelihood Estimation of Regression Models with Finite Order Moving Average Errors, The Review of Economic Studies, V

provide a valuable stimulus to competition beca'use of their insensitivity both to the overall level of entry barriers and to several of the entry barriers taken separately.16 Such a stimulus might be decreed of significant benefit to Canada by the Foreign Policy Review Agency, whlich screens all new foreign direct investment in Canada. However, should this stimulus be givep relatively little weight by the agency, then the composition of entrants into Canadian manufacturing industries is likely to change such that the overall level of entry barriers will be raised substantially.17

Journal Article A Model of Location and Industrial Efficiency with Free Entry Get access J. M. A. Gee J. M. A. Gee The University, Dundee Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 90, Issue 4, November 1976, Pages 557–574, https://doi.org/10.2307/1885321 Published: 01 November 1976

Traditional models of portfolio selection assume that all assets are traded in competitive markets, so that rates of return to any individual investor are fixed. This paper represents an extension of portfolio theory to the case in which asset markets are not perfectly competitive and rates of return cannot be taken as given. Klein [10] has noted that, when asset markets are imperfect, the separation theorem no longer holds but does not solve explicitly for the relationship between risk and return. Here for simplicity we shall consider the case of the investor who has a monopoly in an asset he creates, so that its risk and return characteristics are determined by the decisions of the portfolio selector and hence are endogenous. It will be shown that even if the market for an asset in the portfolio is imperfectly competitive, as long as the demand curve for the asset is well behaved, the locus of efficient portfolios facing the investor, which is composed of combinations of the riskless asset and the optimal combination of risky assets, will be a concave function, as opposed to a linear function in the competitive case. In other words, the introduction of capital market imperfections does not affect the positive slope of the efficient set of portfolios. Moreover, the expected return on the imperfectly competitive asset will be shown to be easily decomposable into the standard risk premium and a monopoly premium.

Executive compensation, Employee stock option, Calculation

R. N. Anderson, John A. Haslem, John B. Leonard, An Empirical Analysis of the Impact of Branching on Demand Deposit Variability, The Journal of Financial and Quantitative Analysis, Vol. 11, No. 3 (Sep., 1976), pp. 455-464

In recent years a number of papers have been concerned with the determination of necessary and sufficient conditions for portfolio separation and for myopia. As a result of these earlier investigations, it is known that a necessary and sufficient condition both for portfolio separation and for myopia is that the investor's utility function exhibit risk tolerance, that is a linear function of wealth. What is lacking in the existing literature is a clear demonstration of the economic relevance of linear risk tolerance for portfolio separation and myopia. It is hoped that this paper will help to fill the gap by an analysis of separation and myopia using the standard tools of price theory: indifference curves, budget lines, and Engel curves. Viewed in this perspective, a substantial part of the analysis can be amplified and clarified in terms of the geometry of the situation.