Major long-run swings in the U. S. stock market over the past century are broadly consistent with a model driven by changes in current and expected future dividends in which investors must estimate the time-varying long-run dividend growth rate. Such an estimated long-run growth rate resembles a long distributed lag on past dividend growth, and is highly correlated with the level of dividends. Prices therefore respond more than proportionately to long-run movements in dividends. The time-varying component of dividend growth need not be detectable in the dividend data for it to have large effects on stock prices.

This paper considers a manufacturer distributing a product through retailers who compete in price and service, which reduces the time it takes to purchase a good. The mix of these instruments that maximizes collective profit is determined by the tastes of consumers on the "product margin, " whereas decentralized retailers consider as well the tastes of consumers on the interretailer margins. Given search or travel costs, consumers with low time costs are overrepresented on the interretailer margins. In considering customers on the wrong margin, retailers are therefore biased toward price competition. This distortion that can be corrected with vertical restraints. I.

We test the theory of the term structure of indexed-bond prices due to Cox, Ingersoll, and Ross (CIR). The econometric method uses Hansen’s generalized method of moments and exploits the probability distribution of the single-state variable in CIR’s model, thus avoiding the use of aggregate consumption data. It enables us to estimate a continuous-time model based on discretely sampled data. The tests indicate that CIR’s model for index bonds performs reasonably well when confronted with short-term Treasury-bill returns. The estimates indicate that term premiums are positive and that yield curves can take several shapes. However, the fitted model does poorly in explaining the serial correlation in real Treasury-bill returns.

We test the theory of the term structure of indexed-bond prices due to Cox, Ingersoll, and Ross (CIR). The econometric method uses Hansen’s generalized method of moments and exploits the probability distribution of the single-state variable in CIR’s model, thus avoiding the use of aggregate consumption data. It enables us to estimate a continuous-time model based on discretely sampled data. The tests indicate that CIR’s model for index bonds performs reasonably well when confronted with short-term Treasury-bill returns. The estimates indicate that term premiums are positive and that yield curves can take several shapes. However, the fitted model does poorly in explaining the serial correlation in real Treasury-bill returns.

A dynamic model with many sellers and buyers is constructed. Agents failing to trade may trade in the next period. An equilibrium is found where sellers hold identical auctions and buyers randomize over the sellers they visit. The distribution of buyer valuations is endogenous. An auction with efficient reserve is an optimal mechanism from each seller's point of view, in spite of the ability of any seller to alter the distribution of buyer types participating in the seller's mechanism by altering the mechanism.

Kyoji Fukao, Roland Benabou; History Versus Expectations: A Comment, The Quarterly Journal of Economics, Volume 108, Issue 2, 1 May 1993, Pages 535–542, ht

This paper investigates the Automobile Industry code negotiated in 1933 and modified in 1935 under the National Industrial Recovery Act. The amended code contained a provision calling for automobile producers to alter the timing of new model introductions and the annual automobile show as a means of regularizing employment in the industry. Our analysis of this period provides evidence against the hypothesis that changes in fundamentals led to the dramatic changes in the seasonal pattern of production and sales starting in 1935. Instead, it appears that the National Industrial Recovery Act succeeded in coordinating activity on an alternative Nash equilibrium.

Reviews the book "International Handbook of Accounting Education and Certification," edited by Kwabena Anayane-Ntow.

Reviews the book `Business Ethics: A European Casebook,' by John Donaldson.

Reviews the book "The Audit Expectations Gap in the United Kingdom," by Christopher Humphrey, Peter Moizer and Stuart Turley.