Previous tests for liquidity constraints using consumption Euler equations have frequently split the sample on the basis of welath arguing that low wealth consumers are more likely to be constrained. We propose alternative tests using different and more direct information on borrowing...

In recent years, the number of downgrades in corporate bond ratings has exceeded the number or upgrades. This fact has led some to conclude that the credit quality of US corporate debt has declined. However, declining credit quality is not the only possible explanation.

We examine the intertemporal optimal consumption and investment problem in a continuous-time economy with a divisible durable good. Consumption services are assumed to be proportional to the stock of the good held and adjustment of the stock is costly, in that it involves the payment of a...

A growing number of empirical studies suggest that betas of common stocks do not adquately explain cross-sectional differences in stock returns. Instead, a number of other variables that have no basis in extant theoretical models semm to have significant predictive ability.

The goal of this paper is to examine the impact of 1975 Congressional mandate to integrate the trading of NYSE-listed stocks.