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The effect of circuit breakers on expected volatility: tests using implied volatilities.
June 1, 1997... Introduction
Following the stock market crash in October 1987, interest in the effect of circuit breakers on market volatility has grown among academics, practitioners, and regulators. Increasingly, trading controls have been implemented in...
Market structure, Pigouvian taxation, and welfare.
June 1, 1997... Introduction
Economists have traditionally considered Pigouvian taxes (per-unit taxes) to be a feasible instrument for controlling externality-generating activities and restoring social efficiency.(1) There are, however, doubts in the...
Is the world economy more integrated today than a century ago?
June 1, 1997... Introduction
The conventional view is that the world economy is more integrated or internationalized today than it was a century ago. Changes in economic conditions in any given country are rapidly felt in other countries. Countries are linked...
Financial innovations and interest elasticity of money demand: evidence from an error correction model.
June 1, 1997... Introduction
The interest elasticity of money demand has profound implications for monetary policies and the proliferation of money substitutes due to financial innovations in the 1980s has renewed interest in the interest elasticity of money....
Money and banking in a mature Walrasian economy.
June 1, 1997... I. Introduction
The crucial property of a mature Walrasian economy that distinguishes it from the Walrasian original as it appears in the Edition Definitive (1926) of the Elements [Walras, 1954] is its explicit inclusion of long-term bond and...
The impact of net international capital inflows on nominal long-term interest rates in France.
June 1, 1997... Introduction
In recent years, determinants of interest rates have been investigated extensively by a number of macroeconometric studies, in most cases using regression analysis [Alexander, 1989; Al-Saji, 1991, 1992, 1993; Barth et al., 1984,...
The wages of sin: employment and salary effects of violence in the National Hockey League.
June 1, 1997... Introduction
Over the last 20 years a wide-ranging literature has developed concerning the causes, effects, and policy implications of violence in professional team sports.(1) While the contributions of economic research to this literature...
Export quotas versus export tariffs in the presence of domestic monopoly.
June 1, 1997... It has been known that import tariffs and import quotas are different in their economic effects in the presence of domestic monopoly [Bhagwati, 1965]. The purpose of this paper is to show that export quotas and export tariffs are different in...
A Soaring Eagle: Alfred Marshall, 1842-1924.
June 1, 1997... Introduction
An uneventful life, spent almost entirely at Cambridge University from the age of 19 onwards, except for a seven-year exile due to university regulations imposing celibacy on fellows, an academic career never interrupted by hectic...
A comparison of lag structure specification methods in VAR models.
June 1, 1997... This paper is concerned with selection of lag lengths for VAR models. Specifying the correct lag length is important because estimated VAR models with lag lengths different from the true model are misspecified.
Typically, the same lag length is...
Economic effects of the comprehensive health plan in the US.
June 1, 1997... This paper uses a demographically enhanced dynamic Almost Ideal Demand System (AIDS) to study the effects of a comprehensive health plan (CHP) on consumer behavior in the U.S. The dynamic AIDS model, with myopic habit formation and demographic...
U.S. steel production and the natural rate hypothesis.
June 1, 1997... The effect of money supply fluctuations on production has been a topic of debate among macroeconomists for some time. According to the Natural Rate Hypothesis (NRH), only unanticipated (as opposed to anticipated) money supply movements should...
What are sunk costs?
June 1, 1997... This note addresses the ambiguities in contemporary treatments of sunk and fixed costs. Sunk costs of contestable market literature identify cost differences between established firms and potential entrants. Sunk costs decline through time as do...