A Fast Literature Search Engine based on top-quality journals, by Dr. Mingze Gao.
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- Please kindly let me know [mingze.gao@mq.edu.au] in case of any errors.
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Results 286 resources
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Asset-pricing models which assume a constant interest rate may misprice contingent claims if the interest rate fluctuates significantly or if the price of the underlying asset is cor-related with the interest rate. A model per-m itting a stochastic interest rate and correlation of the underlying a sset's price with the interest rate is tested with daily closing pric es for Comex gold futures options. The stochastic interest-rate model is superior to a constant interest-rate model in predicting market p rices. The results suggest that interest-rate volatility is an import ant element in contingent-claims valuation.
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The market for ski runs or amusement rides often features admission tickets with no explicit price per ride. Therefore, the equilibrium i nvolves queues, which are systematically longer during peak periods s uch as weekends. Moreover, the prices of admission tickets are much l ess responsive than the length of queues to variations in demand, eve n when these variations are predictable. Despite the queues and stick y prices, the authors show that the outcomes are nearly efficient und er plausible conditions. They then show that similar results obtain f or some familiar congestion problems and for profit-sharing schemes i n the labor market. Copyright 1987 by American Economic Association.
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The author examines the cyclical behavior of price/marginal cost margins for U.S. manufac turing after 1956. Short-run marginal cost is markedly procyclical. This is primarily due to procyclical overtime payments, incurred beca use employment is not perfectly flexible. In most industries, output price fails to respond to the cyclical movement in marginal cost; so price/marginal cost margins are markedly countercyclical. The res ults contradict business cycle theories that explain low production i n a recession by a high real cost of producing; they support theories that explain low production in a recession by the inability of firms to sell their output. Copyright 1987 by American Economic Association.
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The Heckscher-Ohlin-Vanek model predicts relationships among industry input requirements, country resource supplies, and international trade in commodities. These relationships are tested using data on twelve resources, and the trade of twenty-seven countries in 1967. The Heckscher-Ohlin propositions that trade reveals gross and relative factor abundance are not supported by these data. The Heckscher-Ohlin-Vanek equations among input requirements, resource supplies, and trade are also rejected in favor of weaker models that allow technological differences and measurement errors. Copyright 1987 by American Economic Association.
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This paper characterizes the conditions under which the adverse-selection problem, which may prevent a firm from issuing securities to finance an otherwise profitable investment, may be costlessly overcome by an appropriate choice of financing strategy. The conditions are specialized when the information asymmetry may be characterized by either a first-degree stochastic dominance or a mean-preserving spread ordering across possible distributions of firm earnings. Possible financing strategies which resolve the information asymmetry are discussed and the results are related to recent empirical findings concerning security issues.
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Journals
- American Economic Review (157)
- Journal of Finance (94)
- Journal of Financial Economics (35)
Topic
- Bond (12)
- Mergers and Acquisitions (2)
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- Journal Article (286)