It 15 difficult to obtain c1osed-fonn solutions for input demand equations that are conducive to econometric estimation and policy analysis when the production function IS unknown Developments In the theory of duality facilitate obtaining such equations This article provides three examples of...

Although the profitability of U.S. small banks shrank in the 1980s, two percent of these banks remained highly profitable by emphasizing basic banking, namely acquiring low-cost funds and making low-risk investments

The Bank for International Settlements (BIS) is an international organization that fosters cooperation among central banks and other agencies in pursuit of monetary and financial stability. The Basel Committee on Banking Supervision, which is part of the BIS, issued a proposal for a New Basel...

The 1988 Basel Accord established 8% of risk weighted assets as the minimum equity capital standard that reflected bank risks at that time. The New Basel Capital Accord, to be implemented in 2006, maintains the 8% equity capital as the minimum standard, and it changes with the way the capital...

Using announcement memos released by the National Bureau of Economic Research (NBER), we show that corporations increase liquidity during the quarter the NBER announces a peak in the business cycle. This reaction is primarily restricted to memos about peaks in the business cycle, whether it is a...

Between 1970 and 2014 the federal funds rate soared from approximately 7.18% to 16.38%, and subsequently declined to 0.09%. Based on economic theory, corporate cash holdings should have moved inversely with these interest rate swings. Using a new measure of cash holdings and a random effects...

Some forms of money have been used since 2,200 BC. What constitutes money evolved from commodities with intrinsic value, such as gold, to commodity- backed paper money. In the United States, this was replaced by “fiat” money issued by the Federal government that is “legal tender” for all...

The product life cycle has been overlooked by academicians who examine the financial aspects of corporate behavior and teach finance. This article demonstrates how the life cycle concept can be used to enhance both research and teaching by demonstrating how key financial variables, such as...