This paper presents a model that reproduces the uncovered interest rate parity puzzle, based on a time-varying business-cycle related risk premium. Agents have preferences with external habits. During bad times in the home market, when the domestic habit is close to domestic consumption level,...

Conflicts of interest between insiders (e.g, controlling shareholders) and outsiders (e.g., minority shareholders) are central to the analysis of modern corporation. In an integrated continuous-time contingent claims framework with imperfect corporate governance, we examine a controlling...

In previous work Reddy and Pogge have argued that inter-country comparisons of income poverty based on poverty lines uniformly re?ecting the costs of the basic requirements of human beings are superior to the existing money-metric approaches. In this exercise, we implement a uniform approach to...

Improving patient compliance with physicians’ treatment or prescription recommendations is an important goal in medical practice. This paper examines the causal relationship between treatment progress and patient compliance. We hypothesize that patients balance expected benefits and costs...

European critics of the U.S. health care system often focus on the private provision of health care and health insurance. Yet the more important difference between the United States and other developed countries is the failure to control government spending. Other countries employ global budgets...