Recent analysis by Clarida, Galí, and Gertler (1999), Jensen (2002), Svensson and Woodford (1999), Walsh (2002), and especially Woodford (1999a, 1999b, 2000) has been highly productive in advancing the profession’s understanding of optimal monetary policy. Specifically, these papers emphasize...

An increasingly popular practice for student assignment to public schools in the U.S. is the use of school choice systems. The celebrated Gale-Shapley student-optimal stable mechanism (SOSM) has recently replaced two de…ficient student assignment mechanisms that were in use in New York City...

Many retailers find it useful to partition customers into multiple classes based on certain characteristics. We consider the case in which customers are primarily distinguished by whether they are willing to wait for backordered demand. A firm that faces demand from customers that are...

Since natural gas reserves in North America and Europe are declining, energy companies there can no longer create value by just drilling more wells; they must create value by better managing their current production assets, and by better leveraging technology. In this paper, we analyze the real...

What is the effect of non-tradeable idiosyncratic risk on asset-market risk premiums? Constantinides and Duffie (1996) and Mankiw (1986) have shown that risk premiums will increase if the idiosyncratic shocks become more volatile during economic contractions. We add two important ingredients to...

In this paper, we depict and analyze simple models of moral hazard, namely “operating moral hazard” and “investing moral hazard.” First we assume that a corporation exists primarily for the benefit of their shareholders. Then, moral hazard occurs when managers choose an option knowingly...

The Tuscan Lifestyles case (Mason 2003) offers a simple twist on the standard view of how to value a newly acquired customer, highlighting how standard retention-based approaches to the calculation of expected CLV are not applicable in a noncontractual setting. Using the data presented in the...

ENGLISH ABSTRACT: This research studies the relationship between economic growth and commodity-market volatility in South Africa. The mining industry, largely supported by gold, diamonds, coal, iron ore and platinum-group metals, has played a central role in South Africa's economic development....

ENGLISH ABSTRACT: This study examines whether there is a solution to the challenges being faced in the capitalmarkets in Zambia. Literature on how other countries have overcome these challenges isreviewed to determine whether there is a solution to these challenges. The study also testsfor the...