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Wage Dispersion and Efficiency. It is often assumed that markets generate efficient allocations, but these are not necessarily fair. The widening of wage differentials that is currently observed is interpreted in this manner: Skill-biased technological progress increases demand for skilled work...
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We develop a general method to infer martingale equivalent probability density functions (PDFs) for asset prices using American options prices. The early exercise feature of American options precludes expressing the option price in terms of the PDF of the price of the underlying asset. We derive...
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Unter der Annahme, daß das reale Bruttosozialprodukt in den OECD-Ländern 1990 um 2,75% und 1991 um 3% wächst, und der … insgesamt (d.h. einschl. Energieträger) 1990 um 4% erhöhen; für 1991 wird mit einem Anstieg um 3% gerechnet. Die Verteuerung … Verbilligung um 2% und 1991 eine weitere Ermäßigung um 1% erwartet. (Mit Tabelle für die Preisentwicklung bei ausgewählten …
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Organizations, particularly large multinational firms, have a substantial impact on the economies and societies in which they operate. Unfortunately some far-reaching influences are not anticipated, and, the consequences of these organizational actions can create long-term, adverse outcomes....
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This paper investigates the market's expectations for oil prices during the Persian Gulf crisis. To do so a general method for using options markets to recover the implied distribution for futures prices is developed. The method applies to a wide class of distributions. In particular, it is not...
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