The paper analyses the risk reduction effect of limits which are imposed on price movements. As a result of the maximisation of the traders' utility functions subject to expected price constraints, a model similar ro the capital asset pricing model (CAPM) is developed, where the observed returns...

The second edition of this widely acclaimed text presents a thoroughly up-to-date intuitive account of recent developments in econometrics. It continues to present the frontiers of research in an accessible form for non-specialist econometricians, advanced undergraduates and graduate students...

This unique book successfully presents intuitive accounts of conceptually difficult ideas making the most recent advances in econometrics accessible to advanced undergraduate and graduate students.