The empirical evidence in the volatility literature suggests that movements in stock prices cannot be satisfactorily explained purely in terms of changes in fundamentals. This paper shows how to obtain proxies for the fundamental and fad components of changes in stock prices and asks the...

The paper provides an empirical investigation into the nature of adjustment costs and their implications for modelling and investment process. In particular, their role in today's most popular models of investment, the rational flexible accelerator and Tobin's q, is considered. In the analysis...

In this paper, we investigate the relationship between bank reserves, deposits and loans using a time series approach. The empirical results show that free reserves cointegrate with both deposits and loans and the causal nexus runs from deposits (in the short run) to reserves and from deposits...

This paper re-examines the issue of asymmetries in the transmission of shocks to crude oil prices onto the retail price of gasoline. Relative to the previous literature, the distinguishing features of the present paper are: i) use of updated and comparable data to carry out an international...

Recent developments in investment research have highlighted the importance of non-convexities and irreversibilities in the firms' adjustment of quasi-fixed inputs. However, aggregation across capital goods may smooth out the discontinuities associated with the adjustment of individual assets....

The first conference of the newly-born Italian Association of Environment and Resource Economists (IAERE) took place in Ferrara last February 8-9, 2013. Professor Marzio Galeotti, Chairman of the Association, describes its main goals and gives a brief overview of the event.

This paper examines the relationship between biofuels and commodity food prices in the U.S. from a new perspective. While a large body of literature has tried to explain the linkages between sample means and volatilities associated with ethanol and agricultural price returns, little is known...