BI Norwegian Business School

About: BI Norwegian Business School is a education organization based out in Oslo, Norway. It is known for research contribution in the topics: Corporate governance & Computer science. The organization has 525 authors who have published 2766 publications receiving 55406 citations. The organization is also known as: Handelshøyskolen BI.

The Equity Premium and the Risk Free Rate: A Cross Country, Cross Maturity Examination

Abstract: This paper examines the relationship between the equity premium and the risk free rate at three different maturities using post-1973 data for a panel of seven OECD countries. We show the existence of subsample instabilities, of some cross country differences and of inconsistencies with the expectations theory of the term structure. We perform simulations using a standard consumption based CAPM model and demonstrate that the basic features of Mehra and Prescott's (1985) puzzle remain, regardless of the time period, the investment maturity and the country considered. Modifications of the basic set-up are also considered.

The Scapegoat Theory of Exchange Rates: The First Tests

Abstract: This paper provides an empirical test of the scapegoat theory of exchange rates (Bacchetta and van Wincoop 2004, 2011), as an attempt to evaluate its potential for explaining the poor empirical performance of traditional exchange rate models. This theory suggests that market participants may at times attach significantly more weight to individual economic fundamentals to rationalize the pricing of currencies, which are partly driven by unobservable shocks. Using novel survey data which directly measure foreign exchange scapegoats for 12 currencies and a decade of proprietary data on order flow, we find empirical evidence that strongly supports the empirical implications of the scapegoat theory of exchange rates, with the resulting models explaining a large fraction of the variation and directional changes in exchange rates. The findings have implications for exchange rate modelling, suggesting that a more accurate understanding of exchange rates requires taking into account the role of scapegoat factors and their time-varying nature.

Encounters between cluster theory, policy and practice in Norway: Hubbing, blending and conceptual stretching:

Abstract: For more than two decades, cluster theory has served as a basis for widespread implementation of regional development policies in several countries. However, there are still persistent struggles in...

The issues in modelling freight transport at the national level

Abstract: Several countries in Europe and elsewhere have a national freight transport model. This paper discusses some old and new issues for these models, based on experiences in at least seven European countries. These issues have to do with the institutional organisation of the work on model development and use, how confidence in these models can be determined and increased, the questions the national freight models are asked and their scope and level of detail. But also what the model philosophy (e.g. aggregate, disaggregate, deterministic, stochastic) should be and which influencing factors should be included. New directions are discussed, such as the trend to include more aspects of logistics decisions of firms. This increases the data requirements of the models. The potential of big data is discussed as well as approaches that use less data but more assumptions.