Similar Search Results

New product introduction and diffusion with costly search

Tse, Chung Yi - Society for Economic Dynamics - SED - 2004

Will the low search cost in the new economy help speed up new product introduction? The usual model of product market search suggests that a low search cost can turn out to have detrimental incentives on innovation and new product introduction as the low search cost erodes firms' market power,...

Persistent link: https://www.econbiz.de/10005069572

Price Setting during Low and High Inflation: Evidence from Mexico

Gagnon, Etienne - Society for Economic Dynamics - SED - 2006

This paper provides new insight into the relationship between inflation and consumer price setting by examining a large data set of Mexican consumer prices covering episodes of both low and high inflation, as well as the transition between the two. The overall portrait is one in which the...

Persistent link: https://www.econbiz.de/10005051217

Innovation and Financial Markets

Cabral, Luis; Fernandes, Ana - Society for Economic Dynamics - SED - 2006

where the profitability of an industry is uncertain, we consider the dynamics of the adoption of innovations/projects and … the relative shares of bank and venture capital financing out of total innovation funding in the sector. In our setup, the … bank. The literature identifies several sources for this operational advantage of venture capitalists relative to other …

Persistent link: https://www.econbiz.de/10005051263

Strategic Asset Allocation, Asset Price Dynamics, and the Business Cycle

Jaccard, Ivan - Society for Economic Dynamics - SED - 2006

reconcile economic theory with several puzzling contradictions recently pointed out in the literature: (i) the asset allocation …

Persistent link: https://www.econbiz.de/10004970312

Conditional Betas

Veronesi, Pietro; Santos, Tano - Society for Economic Dynamics - SED - 2004

Persistent link: https://www.econbiz.de/10004970358

The Empirical Risk-Return Relation: a factor analysis approach

Ludvigson, Sydney; Ng, Serena - Society for Economic Dynamics - SED - 2006

Financial economists have long been interested in the empirical relation between the conditional mean and conditional volatility of excess stock market returns, often referred to as the risk-return relation. Unfortunately, the body of empirical evidence on the risk-return relation is mixed and...

Persistent link: https://www.econbiz.de/10004977922

Financial Leverage Does Not Cause the Leverage Effect

Aydemir, A. Cevdet; Gallmeyer, Michael; Hollifield, Burton - Society for Economic Dynamics - SED - 2006

We quantify the effect of financial leverage on stock return volatility in a dynamic general equilibrium economy with debt and equity claims. We study the effects of financial leverage on the market portfolio, and on a small firm with idiosyncratic and market risk. In an economy with both a...

Persistent link: https://www.econbiz.de/10004977944

Search in Asset Markets

Lagos, Ricardo; Rocheteau, Guillaume - Society for Economic Dynamics - SED - 2006

This paper investigates how the degree of trading frictions in asset markets affects portfolio allocations, asset prices, efficiency, and several measures of liquidity, such as execution delays, bid-ask spreads, and trade volumes. To this end, we generalize the search-theoretic model of...

Persistent link: https://www.econbiz.de/10005048013

The Returns to Currency Speculation

Burnside, Craig; Eichenbaum, Martin; Kleshchelski, Isaac; … - Society for Economic Dynamics - SED - 2006

Currencies that are at a forward premium tend to depreciate. This `forward premium-depreciation anomaly' represents an egregious deviation from uncovered interest parity. We document the returns to currency speculation strategies that exploit this anomaly. The first strategy, known as the carry...

Persistent link: https://www.econbiz.de/10005090763

Interest Rate Swap and Corporate Default

Jermann, Urban; Yue, Vivian Z. - Society for Economic Dynamics - SED - 2006

Interest rate swaps are among the most popular derivative contracts. With an interest rate swap, fixed interest payments are exchanged for payments linked to a floating rate. In this paper we develop a dynamic stochastic general equilibrium model to study corporate debt financing and the use of...

Persistent link: https://www.econbiz.de/10005090783