A non-parametric framework for testing the existence of aggregates is developed. The framework is based on the notion of the maximum entropy formalism which is applied to model the size distribution of firms. The theory, once presented, is applied to the US banking industry in order to test for...

Faced with the choice between preserving and developing a natural resource in the presence of uncertain environmental externalities, the social return to undertaking development is stochastic. When development is irreversible and the decision-maker can defer commencement, there is value to new...