This paper tests a necessary condition for the neutrality of money in a framework that imposes only weak restrictions on the money supply process. It extends Bernanke's [1986] work by weakening the set of just-identifying restrictions and by providing a statistical test of the overidentifying restrictions. Instead of specifying a structural model to identify primitive shocks, I deduce the impact effects of structural money shocks under the neutrality hypothesis and then test whether the system maintains neutrality as it propagates these impact effects. The tests reject neutrality for both the M1 and the monetary base.

In aggregate, options on real and financial assets can have very different properties. Typically, the good or service produced by a real asset has a finite elasticity of demand and developers have finite capacities. Also, the supply of options can be limited, and developers can be less than perfectly competitive. In a subgame, perfect Nash equilibrium with these properties, the optimal exercise policy, and resulting values of developed and undeveloped assets are calculated explicitly. The novel comparative statics are discussed in details To date, options on real assets, like real estate, natural resources, and capital assets, have been analyzed only in partial equilibrium. 1 When viewed from the perspective of a single developer with a single undeveloped asset, real options have many characteristics in common with financial options. With real estate and other real assets, the option is an undeveloped property, the underlying asset is a developed property, the exercise price is the cost of development, and the maturity is generally infinite. In previous articles special characteristics of real options have been emphasized. These include the time to build, the often sto-I am grateful to Chester Spatt for suggesting this problem and to Chester

I examine a two-period noisy rational expectations model of a futures market and show that the dispersion of expectations about a weighted average of future prices measures both the additional volatility and the additional expected.volume of trade associated with noisy information. The role played by dispersion helps clarify several stylized facts concerning volume and price behavior. Specifically, dispersion can be a factor contributing to the positive correlation between volume and absolute price changes, and the positive correlation between consecutive absolute price changes. Article published by Oxford University Press on behalf of the Society for Financial Studies in its journal, The Review of Financial Studies.

[In aggregate, options on real and financial assets can have very different properties. Typically, the good or service produced by a real asset has a finite elasticity of demand, and developers have finite capacities. Also, the supply of options can be limited, and developers can be less than perfectly competitive. In a subgame, perfect Nash equilibrium with these properties, the optimal exercise policy, and resulting values of developed and undeveloped assets are calculated explicitly. The novel comparative statics are discussed in detail.]

[I examine a two-period noisy rational expectations model of a futures market and show that the dispersion of expectations about a weighted average of future prices measures both the additional volatility and the additional expected volume of trade associated with noisy information. The role played by dispersion helps clarify several stylized facts concerning volume and price behavior. Specifically, dispersion can be a factor contributing to the positive correlation between volume and absolute price changes, and the positive correlation between consecutive absolute price changes.]

Reviews the book "The Australian Accounting Standards Review Board: The Establishment of Its Participative Review Process," by Asheq Razaur Rahman.

This article examines wage determination among union and nonunion truck drivers using the 96 monthly Current Population Surveys for 1983-90. Union density in the previously regulated for-hire sector of the trucking industry fell from about 60% during the regulatory period of the 1970s to about 25% by 1990. Union log wage premiums fell from 0.40 in the 1970s to 0.30 or below in the 1980s. Longitudinal estimates from multiple panels for 1983-84 through 1989-90 suggest far smaller union premiums, supporting the thesis that part of the wage differential following deregulation is a compensating premium for driver quality.

Official measures of poverty in the United States are compiled by the Bureau of the Census by comparing a household's income level to a prespecified threshold. From a theoretical perspective it is more appropriate to evaluate the level of poverty using a consumption-based measure of household welfare. In this paper I evaluate the level of poverty using expenditure data from the Consumer Expenditure Survey. I find that consumption-based poverty rates are much lower than those based on income. The trend in the poverty rate in the United States is sensitive to the price index and equivalence scales used to adjust the poverty thresholds.

Official measures of poverty in the United States are compiled by the Bureau of the Census by comparing a household's income level to a prespecified threshold. From a theoretical perspective it is more appropriate to evaluate the level of poverty using a consumption-based measure of household welfare. In this paper I evaluate the level of poverty using expenditure data from the Consumer Expenditure Survey. I find that consumption-based poverty rates are much lower than those based on income. The trend in the poverty rate in the United States is sensitive to the price index and equivalence scales used to adjust the poverty thresholds.