Regression-based testing techniques has long been used to quantify whether the efficient frontier of a set of assets spans the frontier of a larger collection of investments. This work derives regression-based spanning tests for the case in which the investment possibilities set contains, or is...

This paper provides an overview of key governance issues of relevance to the upstream oil and gas industry in Canada. The focus is on implications of Canada’s constitutional organization as a federation of ten provinces and three territories. Regulatory structures and provisions are described,...

Simulation models of stylized oil sands projects that include detailed representations of different royalty and tax regimes are developed. These models are then used to examine the distribution between developers and governments of net returns associated with the development and production of...

The average return on long-term bonds exceeds the return on short-term bills by a large amount over short investment horizons. A riding-the-yield-curve investment strategy takes advantage of the higher returns on longer term bonds. This strategy involves the purchase of bonds with maturities...

Our empirical analysis unveils a striking uniformity between the returns of Canadian federal and provincial bonds. Furthermore, the return spreads between these debt instruments are shown to be white noise. Relying on tests for mean-variance spanning, we also show that market participants are...

Supplementing a finite state-space static securities market with options obtains market completeness. This study concludes that options maintain the same spanning power in the space of bounded payoff topologized by its duality with the space of the state price densities.