In this article we study the effects of transaction costs on asset prices. We assume an overlapping generations economy with a riskless, liquid bond, and many risky stocks carrying proportional transaction costs. We obtain stock prices and turnover in closed form. Surprisingly, a stock's price...

Real exchange rates appear to present a specific behaviour in the early phase of transition: they are largely unaffected by nominal exchange rate movements and exibit trend appreciation. The model presented here describes the transition process as the emergence of two new (traded and non-traded...

This paper develops and characterises an index of trade policy restrictiveness defined as the uniform tariff equivalent which maintains the same volume of trade as a given set of tariffs, quotas, and domestic taxes and subsidies. We relate this volume-equivalent index to the Trade...

Linking pay to performance is something employers increasingly seek to achieve. This was once seen as an objective which could only be met in the private sector. That is no longer true. In the 1990s the British public services have experienced a revolution which has attracted the interest and...

The first CVO International Working Paper makes a set of general observations about international third sector research and argues that there are currently two ‘parallel universes’ of literature. The first of these is work which focuses on the ‘North’ (on what are often termed...

This paper compares adversarial with cooperative industrial and trade policies in a dynamic oligopoly game in which a home and foreign firm compete in R&D and output and, because of spillovers, each firm benefits from the other''s R&D. When the government can commit to an export subsidy, such a...

Both Britain and Australia have seen rapid, inadequately funded, expansion of student numbers, and increasing central planning. To address these problems, this paper argues (a) that students should pay via a system of income-contingent loans for the private benefits they derive from higher...