I survey and assess the development of continuous-time methods in finance during the last 30 years. The subperiod 1969 to 1980 saw a dizzying pace of development with seminal ideas in derivatives securities pricing, term structure theory, asset pricing, and optimal consumption and portfolio...

We present an equilibrium framework in which asset prices, default-free term structure and default premia are determined simultaneously.

Most of the market microstructure literature has focused on the liquidity of individual securities, whereas most of the asset pricing literature has focused on the association between systematic risk and return. We document the presence of a systematic, time-varying component of liquidity. At...

Previous work on bioprospecting has suggested that the potential market returns to genetic resource conservation are likely to be inconsequential. This article shows that when the buyers of genetic resource options are also competitors in patent races, sellers can extract all the surplus...

Consider the following two well-diversified portfolios: the first consists of 100 preferred stocks and the second of 100 regular equity stocks. Which of the two portfolios is riskier? Common sense would seem to suggest that the equity portfolio is more risky. in terms of traditional concepts it...

I develop a framework for thinking about some aspects of sustainability. The framework is one for modeling the dynamic interactions of economic and biological systems, studying the time paths that can emerge from these, and then selecting one of these as optimal. I investigate alternative...