Implications of factor-based asset pricing models for estimation of expecte d returns and for portfolio selection are investigated. In the presence of model mispricing due to a missing factor, the mispricing and the residual covariance matrix are linked together. Imposing a strong form of this...

Structural models are apowerful tool for business cycle and monetary analysis because they are invariant to either policy changes or external stocks. In this paper, we derive a sidrauski-type model in which both the demand and supply side are structural in the sense that the behavorial equations...

A general equilibrium model with consumer-producers, economies of specialization, and transaction costs is developed to explain the land price differential between the urban and rural areas by evolution in division of labor. It shows that as transaction conditions are improved, the equilibrium...

I consider the problem of choosing index numbers of puchasing power and real income for international comparisons. I show that the desirable properties of methods based on the Fisher Ideal index do not extend to multilateral comparisons, except when tastes are homothetic.

This paper provides an explanation for an important institutional feature of staggered time-dependent adjustment rules assumed in a number of macroeconomic models (Fischer, 1977; taylor, 1980; Blanchard, 1986).