This paper analyses the asymmetries in the response of petrol prices to oil price shocks. We show that previous work, based on the determination of asymmetric responses, can be improved upon by allowing for asymmetries in short term dynamics. The paper shows that a significant determinant of the...

This paper demonstrates that the intuitively appealing argument based on the postulated trade-off between expected return, variance and skewness of return of a risk-averse gambler does not provide an explanation of observed betting behaviour. It is shown how the expected utility of a...

The purpose in this letter is first to review briefly the empirical results on the relationship between real interest rates and real exchange rates; this empirical literature provides little support for the hypothesis of Roll that expected real interest rates are equal in general. Our second aim...