This paper derives, and then estimates, a model of employment where unions and firms bargain over wages and possibly employment, and efficiency wage considerations may be important. It illustrates the difficulties associated in interpreting many existing attempts to discriminate between...

This paper attempts to explore whether lagged variables that help predict stock returns are merely proxying for mismeasured risk. Therefore, three different ways of measuring risk are employed (i.e., semiparametric, GARCH, and lagged squared returns). In an application to Japanese data, four key...