This paper compares two well-known approaches for valuing a risky investment using real options theory:contingent claims (CC) with risk neutral valuation and dynamic programming (DP) using a constant risk adjusted discount rate.Both approaches have been used in valuing forest assets.A proof is...

In response to the widespread availability of illegal contraband, the federal and five provincial governments in Canada implemented a 40-60% reduction to cigarette excise taxes in February 1994. We exploit this unique and discrete policy shock by estimating the effects of cigarette taxes on...

In this paper, we examine the idea that a general model of consumption should allow for the direct effect of government expenditures in a two-good permanent-income model. We show, given an assumed preference specification, that there is a cointegration restriction implied by an intraperiod...

Organizations seek to differentiate themselves in the marketplace by deploying information technology (IT) to develop dynamic IT capabilities and resist competitors’ attempts to imitate or improve these capabilities. While this strategy has been justified on the grounds that dynamic IT...

We examine the theoretical, empirical, and public policy implications of the proportion of females in the establishment. Arrow's model of heterogeneous employer discrimination provides predictions that are tested. Empirical results indicate support for the theory using establishment data, but a...