This paper aims to assess the low-frequency dynamics of energy inflation’s volatility across a sample of six OECD advanced countries. The traditional argument attributes a transitory effect to energy inflation neglecting longer-term economic consequences. Using the wavelet power spectrum, we...

We consider a model of the stock market with delegated portfolio management. All agents are rational: some trade for hedging reasons, some investors optimally contract with portfolio managers who may have stock-picking abilities, and portfolio managers trade optimally given the incentives...