Researches will not draw the correct inferences about the values of coefficients estimated in a linear regression when both the dependent and the independent variable are part of an accounting identity (or accounting semi-identity close to a full one). The coefficients cannot tell us about a...

This experiment uses a Monte Carlo simulation designed to test whether the problems about the use of accounting identities are present in the model of Fazzari, Hubbard, and Petersen (1988). The Monte Carlo simulation creates 10,000 sets of randomly generated cash flows, Tobin's Q, and an error...

This paper examines relationships between theory of financial risk and size. Based on the work of Makridakis / Taleb [2009] and Taleb / Tapiero [2009], presents the problems of excessive risk and imbalances caused by the size of firms. Markets mixed on firm growth traps externalities can...

In this brief note describes the trajectory of the fractal models/multifractal F/M by Benoit Mandelbrot. The promise was discovered by the geometry of Mandelbrot covers a broad area of research fields, from meteorology and mathematical physics to the individual and collective behavior in...

Scientific rhetoric can have a profound impact on the perception of research; it can also drive and direct further research efforts. What determines whether results are discussed in a neutral or a judgmental way? How convincing must results be so that authors call for significant policy changes?...

Scientific rhetoric can have a profound impact on the perception of research; it can a lso drive and direct further research efforts. What determines whether results are discussed in a neutral or a judgmental way? How precise and convincing must results be so that authors call for significant...

This paper asks the question: Why has the ?general-to-specific? cointegrated VAR approach as developed in Europe had only limited success in the US as a tool for doing empirical macroeconomics, where what might be called a ?theory comes first? approach dominates? The reason this paper highlights...

The primary aim of the paper is to place current methodological discussions on empirical modeling contrasting the 'theory first' versus the 'data first' perspectives in the context of a broader methodological framework with a view to constructively appraise them. In particular, the paper focuses...

We have experimentally tested a theory of bounded rational behavior in a "lemon market". It provides an explanation for the observation that real world players successfully conclude transactions when perfect rationality predicts a market collapse. We analyzed two different market designs :...

Wir nutzen die Ergebnisse eines Experiments über Lemons-Märkte, um wirtschaftspolitische Folgerungen über die EU-Verbraucherschutzregulierung von 1999 abzuleiten. Die beiden Marktdesigns, die im Experiment getestet wurden, unterscheiden sich hinsichtlich des Grades, zu dem die Verbraucher das...