The finite horizon cash balance problem with charges levied against the cash balance is considered. Conditions, sufficient to show that a two-sided (s, S) policy is optimal, are given. We consider transactions cost functions which include no fixed costs, and are linear in the amount of change....

The value of information is used to evaluate the worth of a forecast to the recipient. The basic concepts of information economics are augmented by modern Bayesian statistical methods to provide a means of learning about the true, but unknown, information structure and distribution of state...

This paper examines the expected utility effects of adding one risk to another. In comparison to related works, it places fewer restrictions on utilities and more structure on risky asset returns. The paper, entailing little loss of generality, uses discrete variables defined on a common domain...

This paper examines stochastic dominance relations among discrete random variables defined on a common integer domain. While these restrictions are minimal, they lead both to new theoretical results and to simpler proofs of existing ones. The new results, obtained for dominance criteria of any...

This paper studies the optimal risky investment problem with fewer restrictions on utilities, and more structure on risks, than does the current literature. It uses discrete random variables defined on a common domain, hereafter called standardized variables, to obtain new results without...

This paper discusses aspects of designing appropriate financial regulation for Canada. It outlines a theory of financial system organization and uses it to assess recent legislative actions and proposals. The paper argues that current and proposed regulation incorporates too many constraints and...