This paper shows, using a standard CAPM model of security prices in a world market, that even small countries can affect the price of domestically issued risky securities, while large countries can affect the prices of all securities. As a result, countries have the incentive to set tax rates...

Hal Varian, of UC Berkeley, points out that randomization could help avoid the adverse selection in the Treasury's proposed auctions of mortgage backed securities.

Website morphing seems to be a useful technique, with applications beyond matching cognitive style.

This is a set for frequently asked questions (and answers) about the economic, institutional, and technological structure of the Internet. The authors describe the current state of the Internet, discuss some of the pressing economic and regulatory problems, and speculate about future developments.

Three pioneers of quantitative finance have now been justly honored: Harry Markowitz, Merton Miller, and William Sharpe received the Nobel Prize in Economic Science in 1990. From today's perspective it is hard to understand what finance was like before portfolio theory. Here I attempt to provide...