Traditional macroeconomics finds a multiplier of 1.0 when taxes and expenditures are increased by the same amount. It results from uniform tax increases and a constant marginal propensity to consume. We show that a greater multiplier results when the tax rate increases on those with a lower...

The on-the-run phenomenon is regularly found in the bond markets. The on-the-run phenomenon is the yield difference observed when a new bond issue comes to market from the same issuer and gets a better price (lower yield given equivalent duration) from the market than the older issue. This paper...

This study attempts to explain why the equity market earns greater returns for bearing risk when a Democrat is President in the USA versus a Republican. We look at data from 1929 through 2012. The data show that the value weighted return minus the corresponding period's risk free rate is 10.83%...

Traditional macroeconomics finds a multiplier of 1.0 when taxes and expenditures are increased the same amount. It results from uniform tax increases and a similar constant marginal propensity to consume. I show that a greater multiplier results when the tax rate increases on those with a lower...

In spite of the increased level of merger and takeover activity, and the intense interest of researchers in the subject, many important questions about tender offers remain unanswered. For example, what determines the size of bid premiums? Can we predict whether or not a tender offer will be...

The current definition of a quot;going concernquot; according to GAAP does not take into consideration whether an on-going business exists that is separate or separable from its owner/manager in a closely-held firm or is merely an extension of the individual as an entity. In this study, we...

This paper identifies and solves the multi-period agency problem. Overcoming the major weakness of traditional agency theory in a one period world, we adopt a multi-period option method to show adverse incentive problems with debt solving for the actual agency cost using compound options. It...

Our paper models and empirically tests the production behavior of firms operating under uncertainty. The study compares firms operating in perfect competition with those producing with product market power. Our model predicts that both types of companies produce less under uncertainty from the...