The purpose of this paper is to propose a nonparametric interest rate term structure model and investigate its implications on term structure dynamics and prices of interest rate derivative securities. The nonparametric spot interest rate process is estimated from the observed short-term...

The paper considers a (static) portfolio system that satisfies adding-up contraints and the gross substitution theorem. The paper shows the relationship of the two conditions to the weak dominant diagonal property of the matrix of interest rate elasticities. This enables to investigate the...

The authors propose a model of gift evaluation by consumers, which specifies that the total value or utility of a gift transaction is an additive and a multiplicative function of the acquisition utility and exchange utility of the gift. They apply the model to the evaluation of money as a gift,...