The author examines the effect of unknown expected growth rates on irreversible investment decisions. With parameter uncertainty, it may be optimal in some periods to delay investment no matter what the current value of the project in order to collect more data on the unknown parameter. The...

This paper analyses the effects of inflation on ex-post real interest rates in an international framework. A dynamic factor model is estimated in which real interest rates are influenced by real interest and inflation factors that are common to all the countries, and by country-specific factors....

This paper provides a detailed empirical analysis of Canadian city housing prices. We examine the long-run relationship between city house prices in Canada from 1985 to 2005 as well as idiosyncratic relations between city prices and city-specific variables. The results suggest that city house...

The purpose of this paper is to examine the joint hypothesis of interest-rate parity and rational expectations for Canada a nd the United States using monthly data. Two approaches to testing are considere d: (1) the substitution method and (2) testing the cross- equation nonlinear rati onal...

Capitation models have been suggested as an alternative to funding methods based on historical utilization patterns. Capitation funding distributes resources to regions or programs according to their population, adjusted for the age and gender composition and relative need. The most commonly...

This paper assesses the ability of general-equilibrium models of asset pricing using two recently developed sets of preferences to account quantitatively for the observed variability in the Canadian term structure of interest rates. The preference structures are nonexpected utility and habit...