This paper examines return predictability when the investor is uncertain about the right state variables. A novel feature of the model averaging approach used in this paper is to account for finite-sample bias of the coefficients in the predictive regressions. Drawing on an extensive...

As economic internationalization advances, the question of how firms cope with increasing pressure for competitiveness gains momentum. While scholars agree that firms need a competitive advantage, they debate whether firms exploit the comparative advantage of their economy and converge on that...