Inherent to most research projects is the fact that researchers learn about their project during the course of it. Research investments result in signals on development costs. This paper studies how this fact influences firms’ investments, and how revenue sharing can correct inefficient...

We study the optimal regulation of complementary input supply. The regulator chooses for either a monopolist producing two complementary inputs in fixed proportion, or two independent firms producing one input each. Under independent input supply, nonmonotonic regulatory schemes become optimal...

We demonstrate that the correlation of saving and investment is measured best by an error correction model (ECM), because theory implies a cointegrating relation between these variables. The ECM comprises all previous specifications as special cases, which are shown to be potentially...

The Norwegian capital controls had a significant effect on stock returns only in the early eighties when controls were stringent although they did not influence short-term interest rates throughout the sample period (1980-90). Our result thus contributes to a growing body of evidence on the...

We demonstrate that the correlation of saving and investment is measured best by an error correction model (ECM), because theory implies a cointegrating relation between these variables. The ECM comprises all previous specifications as special cases, which are shown to be potentially...