Most of those who take macro and monetary policy decisions are agents. The worst penalty which can be applied to these agents is to sack them if they are perceived to have failed. To be publicly sacked as a failure is painful, often severely so, but the pain is finite. Agents thus have loss...

Most of those who take macro and monetary policy decisions are agents.  The worst penalty which can be applied to these agents is to sack them.  Agents thus have loss functions which are bounded above.  We work with a bell loss function which has this property.  With additive uncertainty the...

This paper shows that standard corporate finance theory implies that there is potentially a trade off between the variances of dividends and equity prices. We show how the trade off works in a stochastic difference equation model of dividend policy demonstrating that the solution may be unstable...

The second half of August 1998 was dominated by two events. From 14 to 28 August, the Hong Kong Monetary Authority (HKMA) intervened in Hong Kong equity markets to prevent a speculative double play against their currency board. On 17 August, Russia announced its default on sovereign bonds. This...

The Economics of Seasonal Cycles by Jeffrey A. Miron. Pp. xviii+225. Cambridge, Massachusetts: MIT Press, 1996. ($US30.00 cloth) WEB INFORMATION: http://mitpress.mit.edu/book-home.tcl?isbn=O262133237.