The idea that capital flows accelerate and decelerate in response to differential rates of return on real investment is common to virtually all of economic theory. This paper examines the nature of this process, especially the relationship between returns in the stock market and returns on real...

This research project seeks to address two critical problems in the theory of international bond pricing: 1) how can exchange rate risk be formally incorporated into standard bond valuation models?, and 2) how must strategies to “immunize†bonds against interest rate and inflation risk...

The post-war American insurance industry has undergone a profound change in the structure of demand for labour owing to massive mechanisation in the form of both automation and computerisation. This paper finds that the classical dynamic of labour-displacing technological change--as identified...

Employing seemingly unrelated regression (SUR) models with panel corrected standard errors (PCSE) this research augments and extends Fama and French's (2000) 'first stage' model of expected cross-sectional profitability. Capital intensity, defined as the ratio of depreciation plus interest...