Showing papers in "The Quarterly Review of Economics and Finance in 1995"

TL;DR: In this paper, the authors assess general research opinions, barriers to using sophisticated financial management decision-making techniques, and the understanding, utilization, and research preferences of practicing financial managers.

TL;DR: In this article, the authors compare the use of Harsanyi and Selten's risk dominance and payoff dominance as equilibrium selection criteria, and present experimental evidence that suggests the existence of a payoff dominated risk dominant equilibrium is a necessary and sufficient condition for coordination failure.

TL;DR: In this article, the authors considered five major uncertainty variables, namely, the growth rates of real interest rate, personal consumption, composite index of leading indicators, index of stock prices and GDP deflator, and found a significant negative relationship between uncertainty and investment.

TL;DR: In this paper, the economic theory of network externalities is used to explore the possibility of consolidation and growing market power in the exchange-traded derivatives industry and a definition of implicit mergers between exchanges is offered.

TL;DR: In this article, the authors make an estimate of the standard deviation of returns in markets for perpetual claims on countries' incomes and show that there is much fundamental uncertainty to be hedged.

TL;DR: This article examined the wagering behavior of the "uninformed" bettor using data from a second tier racetrack and found that the high correlation between subjective and objective probabilities suggests an efficient win pool.

TL;DR: In this article, the authors apply the emerging literature on security design to the futures problem and describe the characteristics of successful futures contracts implied by the design literature, and where possible, relate these observations to empirical studies.

TL;DR: In this paper, the authors synthesize the empirical research on employer search effort by considering information networks and search effort together within a job-matching framework, and find that when firms search through informal networks, the resulting worker-firm matches are superior to those resulting from search through formal networks.

TL;DR: In this article, single equation Tobit regressions are run explaining the absence rate of employed men and women in the 1986 wave of the Panel Study of Income Dynamics (PSID) to answer how much, if any, smoking contributes to absenteeism.

TL;DR: The authors examined the effect of the Canadian option listings on the volatility of the underlying stocks and found that put option listings reduced the variance as well as the beta of the optioned stocks during the early years of trading (1970's).

TL;DR: In this paper, a direct test on the equality of correlation matrices of 12 international stock markets was conducted to examine the intertemporal stability in stock market co-movements.

TL;DR: In this paper, the authors present and estimate models of an asymmetric relationship between CRSP stock index returns and the US unemployment rate based on the Akaike Information Criterion.

TL;DR: In this paper, money demand functions are estimated using flow of funds data and Cointegrating relationships are found for household and (non financial) business sectors for both sectors, however, they exhibit parameter nonconstancy for time periods which roughly correspond with important financial innovations and deregulations.

TL;DR: In this paper, the authors examined the impact of the establishment of the Federal Reserve's source of strength policy on bank holding companies (BHCs) and found that no significant change in share price or systematic risk was detected for BHCs with all healthy bank subsidiaries.

TL;DR: The authors used an augmented Solow growth model to study convergence in per-capita incomes of the fifty states using annual time-series data from 1955 to 1987, and found that accumulations of private-sector capital and human capital contribute to changes m percapita income.

TL;DR: In this article, the authors developed the rationale that links a firm's financial health, measured by its cashflow components, to the type of security it offers when raising external capital.

TL;DR: In this article, the economic efficiency of a sample of municipal and cooperative Tennessee Valley Authority electric distributors was examined, showing that cooperatives appear to be somewhat more absolute price efficient than municipals.

TL;DR: In this paper, an analysis based on a cross-section of banking markets in which entry is treated as a discrete variable with a Poisson distribution is presented. But no empirical account exists that explains the entry of Black-owned Commercial Banks (BCBs).

TL;DR: In this article, the authors show that rural banking markets are imperfectly contestable and that the conduct of intumbent firms will be influenced by the degree of actual and potential competition.

TL;DR: In this paper, the imp& ojinsidel- trading regulaton (ITRJ) on securities market and ML soctal welfure, and argue that the in+osition “j ITR forces n reallocation of wealth and rusk thut decreases social welje second, it worsens the Ibk s/lag and, third, it dzverts resouxesfmm the productive sector of the economy.

TL;DR: In this article, the authors examine the profitability of a horizontal merger and its effects on the outsiders' profits and industry prices, in a market for a homogeneous product where firms with sunk capacity costs engage in price competition.

TL;DR: In this paper, the authors investigated the impact of voucher plans for private schools on voter support for public schools when both school and community choice are allowed, and found that in cases where the voucher plan causes migration of households toward the poorer community, there is an increase in the quality of public education in both poor and rich communities.

TL;DR: In this article, the authors address the issue of parameter nonstationarity in event studies by examining its implication for measuring the market response and find that the usual finding of statistically significant positive abnormal returns on and around the split announcement is robust to the more general specification of the underlying return generating process.

TL;DR: In this paper, a theoretical rationale and empirical evidence for the sensitivity of the test of the efficiency of a given portfolio (or test of CAPM if appropriately designed) are provided, and the results support the use of an "asset class factor model" in measuring portfolio performance.

TL;DR: A recent article by Sprenkle argues that most of the missing currency is largely held outside the United States as mentioned in this paper, however, it is implausible to assume that all the currency is held in the US.

TL;DR: In this paper, the validity of long-run PPPP was tested by applying the cointegration methodology of Johansen and Juselius (1990) to monthly exchange rate and price data for eleven countries.

TL;DR: In this paper, the authors react to the paper by John R. Schroeter, entitled "Competition and Value-of-Service Pricing in the Residential Real Estate Brokerage Market" which was published in the Spring, 1987 issue of the Quarterly Review of Economics and Business.

TL;DR: The authors found that workers respond more quickly to changes in their industry wage than to change in aggregate wages or prices in deciding whether to quit than to other industries in deciding to quit, and showed that efficiency wage theory may explain nominal wage rigidity.

TL;DR: In this article, the authors suggest that the current method for compounding and discounting in continuous time may be inaccurate and misleading and suggest an alternative, simple, model using the geometric mean.