Dramatic fluctuations in the stock market raise questions about whether actual prices correspond to fundamentals. Even if there are "bubbles", they may not distort real behaviour if managers base investment decisions on fundamentals. Using a new specification testing strategy based on combining...

This study has offered a critical review of the literature on business fixed investment spending, and has assessed the current state of knowledge and future research agenda. To place some structure on this vast literature, the survey has been organized according to two principles. The first...

Recent research on aggregate fluctuations, coupled with ongoing work in industrial organization, has renewed interest in the existence, magnitude, and cyclical pattern of market power and the extent of increasing returns to scale across industries. By exploiting restrictions from dynamic theory...

This study provides a detailed examination of the determinants of motor vehicle fatalities, and offers a new assessment of the effects of automobile safety regulation. An empirical analysis is made difficult because drivers are unlikely to remain passive in the face of changes in their safety...

The enormous problems facing the banking and thrift industries have concentrated attention on regulatory redesign, but these recent deliberations have not given sufficient attention to the sensitivity of depository institution risk to aggregate (or macroeconomic) shocks. This study offers a...

Recent research on economic fluctuations has focused on the persistent empirical fact of the procyclical productivity of labor. This phenomenon is subject to a number of different explanations - a non-convex technology, labor hoarding, or technology shocks. In order to avoid a number of problems...