In this paper, I use the endogenous structural breakpoint tests to empirically search for a potential structural change in the dynamics of risk free interest rate based on the CKLS model (Chan et al. (1992)). To provide a better finite sample performance of this type of test, I bootstrap the...

Although the Parks (1967) estimator for a SUR model with AR disturbances is efficient both asymptotically and in small samples, Kmenta and Gilbert (1970) and more recently Beck and Katz (1995) note that estimated standard errors tend to be biased downward as compared with the true variability of...

Economic agents undertake actions to protect themselves from sort-run impact of foreign exchange rate fluctuations: Nominal goods prices are set in consumer' currencies and firms hedge foreign exchange risk. A model is presented here which shows that these features of the economy can lead to...

The effects of open market operations and long versus short bond financing on risk in financial markets in a stochastically growing economy are studied. An increase in short bonds, resulting from exchanging long bonds, increases the riskiness of long bonds and raises their real rate of return....

This paper describes the relationship between a youth’s residence at age sixteen and the likelihood he eventually enlists in the military. Data from the NLSY97 show that white youths raised in two parent families are less likely to enlist than those raised in other family structures. Black...