This paper develops two models of the money marketmutual fund maturity decision. The first assumes thatmarkets are efficient but that transactions are costly. Thesecond model relies on a survey of fund managers to selectvariables that might permit exploiting perceivedprofit opportunities....

Most economists take it for granted that a price mechanism is usually the most effective means of resource allocation. This paper compares two methods of allocating resources in the thoroughbred racing market: a price mechanism and bureaucratic restrictions. It is shown that a simple price...

Most asset pricing models postulate a positive relationship between a stock portfolio's expected returns and risk, which is often modeled by the variance of the asset price. This paper uses GARCH-in-mean models to examine the relationship between mean returns on a stock portfolio and its...

Previous research has concluded that prespecified asset allocations used by many Section 529 college savings plans are not only suboptimal, but that they are also so conservative that many investors would do better by avoiding such plans entirely. Recent changes in the tax code and in the rules...

Most economists take it for granted that a price mechanism is usually the most effective means of resource allocation. This paper compares two methods of allocating resources in the thoroughbred racing market: a price mechanism and bureaucratic restrictions. It is shown that a simple price...

This paper develops two models of the money marketmutual fund maturity decision. The first assumes thatmarkets are efficient but that transactions are costly. Thesecond model relies on a survey of fund managers to selectvariables that might permit exploiting perceivedprofit opportunities....

Most asset pricing models postulate a positive relationship between a stock portfolio's expected returns and risk, which is often modeled by the variance of the asset price. This paper uses GARCH-in-mean models to examine the relationship between mean returns on a stock portfolio and its...

Previous research had shown that owning thoroughbred racehorses tends to provide a negative financial return. Yet people continue to purchase and own them. Obviously, rational owners must obtain utility from racing in non financial ways to entice them to willingly pay a premium to enter the game...

Previous research has demonstrated that owning thoroughbred racehorses tends to be a losing financial proposition. Racehorses tend to offer rates of return that are below those of financial assets of similar risk - owners pay a premium to enter the game of racing. Recent research has concluded...

Most empirical work examining the intertemporal mean-variance relationship in stock returns has tended to use relatively simple specifications of the mean and especially of the conditional variance. We augment the information set to include economic variables that other researchers have found to...