We describe a simple model of taxpayer decisions to realize or delay their capital gains and losses. Investors will delay their realizations if the after tax rate of return is sufficiently high. As the holding period for the asset approaches a year and a day (after which capital gains are taxed...

This paper develops a new kernel test for neglected nonlinearity in the conditional expectation function, and compares this test to the Ramsey RESET test (1969) and the Neural Net test of Lee, White, and Granger (1993). Like the Neural Test and the Ramsey Reset Test, this Kernel test is a...

The Consumer Price Index (CPI) has often been the subject of controversy. Historically, the most prominent critics have argued that the CPI overstates changes in the cost of living. Recently, however, some in the investment community and business media have argued that the CPI is an...