This paper studies arbitrage-free conditions for multiperiod asset pricing in frictional financial markets with proportional transaction costs. We consider the Euclidean space for weakly arbitrage-free security markets and strongly arbitrage-free security markets, and establish the weakly...

Purpose – The purpose of this paper is to shed light on the effect of high-level human capital investment, using tertiary education as the proxy, on the urban-rural income gap in China. Design/methodology/approach – Using a panel dataset covering 28 provinces of China over the period from...

This paper re-examines the rank-dependent expected utility theory. Firstly, we follow Quiggin's assumption (Quiggin 1982) to deduce the rank-dependent expected utility formula over lotteries and hence extend it to the case of general random variables. Secondly, we utilize the distortion function...