This study analyzes equity risk premium, that is the incremental return over and above the return on risk free securities for assuming the risk. Using GARCH estimate reveals strong positive correlation between growth rate of GDP and that of the equity risk premium. An increase in future economic...

This paper investigates the determinants of capital structure for 515 U.S. based multinational and domestic corporations for the 1973-1992 period. Key determinants include variables capturing the unlevered effective corporate tax rate, the intensity of use of non-debt tax shelters, and the...

In this paper we demonstrate that a Walrasian, competitive general equilibrium is consistent with some agents as a group dying off faster than the rest and having a worse quality of life. This may also be seen as an application of neoclassical labor economics to the problem of race relations in...

Official intervention in the foreign exchange rate market can prevent the exchange rate from behaving as a random walk. Since central banks have routinely intervened in the foreign exchange market, empirical tests should reject the random walk hypothesis. A number of alternative statistical...

This paper examines the long run relationship between the monetary base and other monetary aggregates with the permanent income and inflation rates predicated on the assumption that the velocity turn over of money is stable over time. Both the cusum square test and unit root test tend to confirm...