In this paper it is shown that an exhaustible resource owner’s supply response to the offer of an indexed bond depends on the correlation between the relative price of the resource and the price to which the bond contract is indexed. The indexed bond encourages current extraction only if this...

A large number of articles in the popular financial press have highlighted the substantial differences in the returns from equal-weighted and value-weighted indexes over the last several years. Thus, an equal-weighted Value Line Composite Index declined 64.8 percent from March 11, 1968, to...