I examine how ex ante symmetric firms that compete in prices strategically decide to invest in research and development of cost-reducing technology when the rival firm and the consumers are not aware of the actual outcome of the investment. I also compare the strategic incentive to invest and...

I analyze the pricing and investment behavior of a firm that signals the environmental attribute of its production technology through its price to uninformed environmentally conscious consumers. I then analyze the effect of change in environmental regulation on the signaling outcome and the...

Estimation of the employment effects of changes in capital investment is a standard tool in public policy debates. Typically, such predictions are based on employment multipliers derived from Input-Output analysis. In this paper, we measure the employment effects of changes in capital investment...

The disparity between closed-end funds¡¯ net asset values and prices has been the focus of numerous research papers over the past half century. Various explanations for this discrepancy have been investigated, with mixed findings. A relatively recent topic is that of the role of small investor...

Cheung et al. (2004) use a vector error correction model that allows different speeds of convergence for nominal exchange rates and relative prices toward PPP. With the current float monthly data for five countries, they argue that the sluggish PPP reversion is primarily driven by nominal...

We examine spillover effects of the recent U.S. financial crisis on five emerging Asian countries by estimating conditional correlations of financial asset returns across countries using multivariate GARCH models. We propose a novel approach that simultaneously estimates the conditional...

The security necessary for investment and income growth is difficult to establish in areas where the government is weak. A prescriptive political objective for unstable countries is to strengthen the government’s ability to make credible commitments to establish security. We model the...

Recent proposals to reduce U.S. debt reveal large differences in their implied targets. These differences demonstrate the uncertainty surrounding future tax rates and long-run debt targets. We use a standard real business cycle model in which a Bayesian household learns about the state-dependent...

We combine regression and propensity score methods to estimate the effect of Internet use on job search. We exploit the distinction between the unemployed and the discouraged, where both desire employment but the latter has ceased active job search due to negative beliefs about the labor market....

We reassess the degree of exchange rate co-movement between the Japanese yen and 5 emerging Asian currencies relative to the US dollar in the 2000s. It is often claimed that these currencies have been closely tied with the Japanese yen possibly due to active interactions of Japan and emerging...