The two forms - additive and index, of the factor analysis of increases and decreases of absolute result quantities are studied. A transition is made from the additive form of the factor analysis with growths of absolute result quantities with non-mean data to its additive and index form with...

This paper undertakes a Bayesian analysis of optimal monetary policy for the U.K. We estimate a suite of monetary-policy models that include both forward- and backward-looking representations as well as large- and small-scale models. We find an optimal simple Taylor-type rule that accounts for...

Purpose – The purpose of this paper is to examine the effects of parameter uncertainty in the returns process with regime shifts on optimal portfolio choice over the long run for a static buy-and-hold investor who is investing in industry portfolios. Design/methodology/approach – This paper...