This paper examines the evolution of the relative price between tradable and nontradable goods in a group of European countries. A model of an open economy is used to analyze different factors that can account for an increase in the relative price of nontradable goods. These factors are: (a)...

This paper attempts to determine whether the fluctuations of conditional first and second moments--which are observed for many assets--are consistent with the Sharpe-Lintner-Mossin capital asset pricing model. The authors test the mean-variance model under several different assumptions about the...