We develop a growth model which distinguishes between capital creation that takes place as a result of conventional investment and accumulation which occurs when temporarily idle assets are reactivated.

The purpose of this paper is to examine the relationship between the volatility of emerging stock markets (ESMs) and their degree of openness.

This paper concentrates upon the short-term changes in the exchange rate that might be considered as 'clouding' more fundamental changes. We focus on week to week changes in nominal bilateral exchange rates. The main concern of this paper is an attempt to identify the sources of exchange rate...

Uzawa (1968) first introduced a simple and appealing method for reducing problems with variable rates of time preference to single-state systems by transforming the time scale from t to (delta's symbol), a utility discount factor. The purpose of this paper is to show that Uzawa's transformation...

Existing models of corporate "short-termism" rely on an exogenously imposed, suboptimal management objective function. This paper endogenizes both managers' concern for short-term stock prices and the resulting distorsions. We consider a standard agency problem between corporate managers and...

This paper models the value of "embedded" options in foreign bonds, using stochastic calculus, by assuming that the exchange rate follows a geometric Brownian motion process and the arrival time of an early redemption of the bond by the issuer conforms to a negative exponential distribution. The...

This paper values a hostile government's option to expropriate a multinational's assets, using stochastic calculus. We assume that the exchange rate follows a geometric Brownian motion process and expropriation events are Poisson distributed through time.