Purpose The purpose of this paper is to examine whether the purchasing power parity (PPP) holds for countries in the West African Monetary Zone (WAMZ). Design/methodology/approach The author uses time series and panel data techniques. Findings Overall, the evidence is inconclusive. The time...

Contemporary policy debates on the macroeconomics of aid often concentrate on short-run Dutch disease effects, ignoring the possible supply-side impact of aidfinanced public expenditure. In the simple model of aid and public expenditure presented here, public infrastructure generates an...

Abstract We consider the problem of maximizing the utility of consumption and terminal wealth in a geometric Ornstein–Uhlenbeck market. We calculate the optimal consumption and wealth processes for power, logarithmic and exponential utility as well as their behavior depending e.g. on...

Purpose – The purpose of this paper is to study the pricing efficiency of convertible bonds and arbitrage opportunities between the convertible bonds and the underlying stocks thus improve market efficiency. Design/methodology/approach – Using nonparametric fixed effect panel data model, the...

Summary In the aftermath of Germany’s reunification, redesigning their product range was a major challenge for East-German enterprises. At the same time, there were growing signs that Western enterprises reacted to globalization and European integration by increasingly pursuing strategies of...