A large body of theoretical literature suggests that capital structure plays an important role as a managerial incentive mechanism. What of the evidence for the agency approach? Cross-sectional empirical studies have identified a positive effect of leverage on expected performance (measured by...

This paper estimates the probabilities of occupational choices for a panel of British children as a function of earnings and socioeconomic background variables. Copyright 1990 by Royal Economic Society.

This paper investigates the information in the term structure of interest rates about future inflation using U.K. data. The author finds that at horizons of up to four years the term structure has predictive value for inflation outcomes. The term structure could, thus, provide a guide to the...

Recent articles have attempted to restore the use of a simple measure of the money supply as an indicator of future price levels, P[star], and to reestablish a causal link from money to prices. In this paper we argue that the P[star] approach is flawed. It is certainly more complex than...

An error correction specification which nests the linear-quadratic production smoothing and stock-adjustment models of inventories is estimated on U.S. seasonally adjusted two-digit SIC data. The restrictions of the general model to the production smoothing specification is accepted for four out...