In the Edgeworth non-tatonnement process, trade occurs if there exists some coalition of agents able to make a Pareto-improving trade among themselves at current prices. It is known that the coalition size required is bounded by the number of commodities and that, provided all agents always have strictly positive endowments, bilateral trade suffices. These results are generalized, but it is shown that, when some agents do not hold all commodities, the information requirements for coalition formation can be very severe. Coalition size is not the only problem; very detailed information on preferences may be needed.

This paper proposes nonparametric tests of additive constraints on the first and second derivatives of a model E(y|x) = g(x), where the true function g is unknown. Such constraints are illustrated by the economic restrictions of homogeneity and symmetry, and the functional form restrictions of additivity and linearity. The proposed tests are based on estimates of regression coefficients, that statistically characterize the departures from the constraint exhibited by the data. The coefficients are based on weighted-average derivatives, that are reformulated in terms of derivatives of the density of x. Coefficient estimators are proposed that use nonparametric kernel estimators of the density and its derivatives. These statistics are shown to be √N consistent and asymptotically normal, and thus are comparable to estimators based on a (correctly specified) parametric model of g(x).

This paper provides an algebraic basis of accounting transactions, procedures and bookkeeping activities in a framework that supports various financial and nonfinancial reports and accounting views. The development is based, on a set of accounting matrix operators. This approach, when combined with database technology, provides for a new level of control and security of accounting information, and minimizes the processing required for information distribution on a “need‐to‐know” basis. The procedural accounting matrix captures the essence of a complete accounting procedure; it is independent of any chart of accounts. Moreover, the order in which matrix operators are combined into the procedural matrix implicitly defines the chart of accounts for the related procedure and the accounts' balances. Consequently, it provides an environment in which alternative charts of accounts, and their financial and accounting implications, can be investigated. This approach, though not yet tested for operational efficiency, thus promotes multiple accounting views, such as GAAP, tax, and managerial accounting, that are all based on the same set of basic accounts, and simplifies their reconciliation. Résumé. Les auteurs suggèrent une base algébrique pour les opérations comptables, les precédés comptables et la tenue des livres dans un cadre approprié à divers rapports financiers et non financiers et à diverses optiques comptables. La mise au point de cette base se fonde sur un ensemble d'opérateurs comptables matriciels. Cette méthode, lors‐qu'elle est combinée à la technologie des bases de données, mène à un niveau accru de contrôle et de sécurité de l'information comptable et minimise le traitement requis pour la distribution de l'information sur une base sélective. La matrice comptable de mode opératoire recouvre l'essentiel du procédé comptable complet; elle est indépendante de tout plan comptable. De plus, l'ordre dans lequel les opérateurs matriciels sont combinés dans la matrice de mode opératoire définit implicitement le plan comptable pour le procédé qui s'y rattache et les soldes des comptes. Par conséquent, la matrice est propice à l'analyse des plans comptables de rechange et de leurs conséquences financières et comptables. Cette méthode, bien que l'efficience de son fonctionnement n'ait pas encore été mise à l'épreuve, se prête ainsi à différentes optiques comptables, telles celles des P.C.G.R., de la fiscalité et de la comptabilité de gestion, qui s'établissent toutes sur le même groupe de comptes fondamentaux, et simplifie leur rapprochement.

Latent variable tests of asset pricing models make assumptions about the joint distribution of observable returns and unobservable benchmark returns. These tests can falsely accept models when a mean-variance efficient portfolio other than the benchmark satisfies the distributional assumptions imposed on the benchmark portfolio. Also, because the assumptions are untestable, there is no way to discover whether a model is being rejected because the assumptions are false. Without these assumptions, however, latent variable tests can be viewed only as tests of distributional hypotheses about mean-variance efficient portfolios of unknown composition.

[Most models of financial structure embody an assumption about financial distress that causes debt to be costly to the issuing firm. This approach has been criticized on the grounds that the assumed costs could be avoided by a costless financial reorganization. In this article we show that despite the possibility of costless reorganization, it may be rational for firms to incur significant costs in the resolution of financial distress. The main assumptions that give rise to our results are the existence of asymmetric information and of judicial discretion that allows courts to impose a reorganization on the claimants of a firm.]

Most models of financial structure embody an assumption about financial distress that causes debt to be costly to the issuing firm. This approach has been criticized on the grounds that the assumed costs could be avoided by a costless financial reorganization. In this article we show that despite the possibility of costless reorganization, it may be rational for firms to incur significant costs in the resolution of financial distress. The main assumptions that give rise to our results are the existence of asymmetric courts to impose a reorganization on the claimants of a firm. Article published by Oxford University Press on behalf of the Society for Financial Studies in its journal, The Review of Financial Studies.

[In this article we construct a model in which a consumer's utility depends on the consumption history. We describe a general equilibrium framework similar to Cox, Ingersoll, and Ross (1985a). A simple example is then solved in closed form in this general equilibrium setting to rationalize the observed stickiness of the consumption series relative to the fluctuations in stock market wealth. The sample paths of consumption generated from this model imply lower variability in consumption growth rates compared to those generated by models with separable utility functions. We then present a partial equilibrium model similar to Merton (1969, 1971) and extend Merton's results on optimal consumption and portfolio rules to accommodate nonseparability in preferences. Asset pricing implications of our framework are briefly explored.]