Central bank independence is widely thought be a sine qua non of a credible commitment to price stability. The surprise decision by the UK government to grant operational independence to the Bank of England in 1997 affords us a natural experiment with which to gauge the impact on the yield curve...

This paper bridges the literature on real options in strategy with that on financial options. It uses insights from both literatures to show how the use of options contracts can encourage innovators to enter markets by mitigating the effects of uncertainty and permitting the capture of greater...

This paper bridges the literature on real options in strategy with that on financial options. It uses insights from both literatures to show how the use of options contracts can encourage innovators to enter markets by mitigating the effects of uncertainty and permitting the capture of greater...

Investors in ventures that threaten to disrupt the markets of incumbents can use the options markets to add value to their investments by purchasing put options on the stock of the disrupted rivals on the basis of their asymmetric knowledge. By making a profit on these derivative trades in the...

This study tests conditional and unconditional versions of the CAPM using portfolios made up of security returns in the UK over the period January 1980-December 1999. The main objectives are to see if the GARCH betas differ from the unconditional betas, and to see if the market risk premium is...

The principal object of the study, set out in Dr. Dejardin's model report of 1st February 1979. is to quantify the factors influEmcing the annual growth in public expenditure between 1970 and 1976 on the following services: general medical care. specialist medical care (excluding in-patient...

Trading volume and order flow have both been closely associated with informed trader activity in the market microstructure literature. Using theory that explains regular intraday patterns in trading data, we transform these two variables into proxies for private information and examine their...

For as long as they have existed, stock markets have attracted fraudsters. "Napoleon Is Dead" is the fascinating tale of one of the earliest stock market scams; a tale of greed, deceit and the public humiliation of Admiral Cochrane, one of the greatest seamen of the nineteenth century. Early on...

We document and account for two facts regarding the relation between international interest rates and total factor productivity (TFP) in a sample of developing countries. First, there is a negative correlation between both variables at quarterly frequency. Second, the share of agricultural labor...

The classical Black-Scholes analysis determines a unique, continuous, trading strategywhich allows one to hedge a financial option perfectly and leads to a unique pricefor the option. It assumes, however, that there are no transaction costs involved in implementingthis strategy, and the stock...