seldom sufficient and always expensive to hold. In this paper we argue that adding richer hedging instruments to the … point with a simple quantitative hedging model, where optimally used options and futures on the S&P100's implied volatility …

risks. Portfolios hedging macro uncertainty have historically earned zero or even significantly positive returns, while …

hedging approach can eliminate nearly 90 percent of the tracking error of more conventional inflation hedging strategies. We … also find that long-short positions in equities play a dominant role in the effective hedging of inflation risk over …

, but not at long horizons. At horizons of several years, complete hedging not only does not lower return variance, it … apparent causes, and investigates their implications for hedging practice …

international diversification is still valuable with regime changes. Currency hedging imparts further benefit. The costs of ignoring … the regimes are small for moderate levels of risk aversion, and the intertemporal hedging demands induced by time …

This paper investigates why passengers pay substantially different fares for travel on the same airline between the … airline price dispersion. We use a unique new dataset to test between two broad classes of theories regarding airline pricing …

;apos; theory of financial contracting predicts that liquidation values determine the allocation of bargaining power between … renegotiation and estimate it using data on the airline industry in the United States. We find that airlines successfully … their fleet is low. Our results show that strategic renegotiation is common in the airline industry. Moreover, the results …

US airline industry. The data include the capital stock retirement, market values, operating costs, and utilization rates … of 16 different types of capitalquot; goods for each airline. This data on heterogeneous capital goods allows us to …