The income elasticity of consumption depends not only on the demand function but also on the characteristics of the supply function. If supply is not completely elastic, the income elasticity of consumption will be less than the income elasticity of demand, with the difference depending on the...

We estimate the price elasticity of the demand for gasoline smuggling in Iran. For this purpose, we employ a detailed panel of monthly gasoline consumption data from 160 distribution hubs during the period 2005-2014. We apply two different approaches which are diff-in-diff and panel data...

We offer a continuous-time contingent claims valuation framework to quantify the tax shield value of US mortgage interest deduction (MID) under uncertainty. We identify non-linear forms (both convex and concave regions) in the pay-off of MID, and discuss the implications for optimal mortgage...

This paper extends existing asset pricing models by differentiating between the storable and non-storable components of aggregate consumption and by introducing a commodity storage technology to the economy. I use this extended model to elaborate the interactions between long-run consumption...

This paper contributes to the theories commodity prices and exhaustible resources by examining simultaneous optimal resource extraction and dynamic capacity building. I analyze the ways in which random demand process and irreversible capacity options shape the long-term price and volatility path...

This paper investigates the existence of correlated equilibria of a shareholder voting game. It is shown that there exists a correlated equilibrium component where a minimum winning coalition (MWC) of the supporters of status quo and a dominant shareholder vote with strictly positive...