Analysis of management compensation has focused on the principal — agent problem. We address the problem confronting owners who must choose a manager without knowing the productivity of individual managers. We find performance contingent contracts may result in a separating equilibrium in...

The possibility that government borrowing may crowd out private borrowing has been widely discussed in the popular press and extensively analyzed by researchers. The Clinton Administration's “Operation Twist,” resulting in increased reliance on short‐term securities to fund the Federal...

This paper examines the strategies and financial ratios of the largest U.S. and European banks. Why are bank profitability ratios in the U.S. and U.K. vastly superior to those in Germany and Switzerland? Is this related to accounting, tax, economic, or regulatory differences, uses of funds, or...

This study establishes a baseline for the mortgage industry's beliefs and attitudes about race, culture, and discrimination in mortgage banking and determines if these attitudes vary by race. Through survey research, the data reveals that race matters in the lending arena.

This paper uses a multifactor logit model to analyze the aftermarket performance of randomly chosen IPO's in hot and cold markets. The theories of risk aversion and utility maximization, in conjunction with the paper's empirical results, suggest that cold market investors are more risk averse...

Maizels hypothesizes that export provides more boosts for saving than the non‐export part of GDP. We use recent time series techniques of unit root and cointegration to test the Maizels' hypothesis for nine Latin American countries. Cointegrated vectors and OLS estimates in first differences...

Zoning is typically deemed a negative‐sum game accompanied by a call for the establishment of a market for development rights. Using a formal one‐stage game of a typical zoning lottery, I demonstrate that zoning is not exclusively negative‐sum, but can also be positive‐sum, even with...

We test two alternative hypotheses concerning the impact of union membership on the reemployment earnings of displaced workers and find support for the hypothesis that unions exert monopoly power in setting wages rather than providing any direct productivity enhancements. This effect holds in...

This study uses the Vector Error Correction Model (VECM) to forecast ex post changes in earning and stock prices of six major DOW companies as well as of the S&P 500 market index. Compared to ARIMA and GARCH models, results from four decades of data are supportive of the forecasting ability of...

The monetary approach to long run exchange rate determination is reexamined for the Canadian — US dollar exchange rate. We first test for non‐stationarity, and then conduct a multivariate cointegration analysis to examine the validity of the monetary model in determination of exchange rates...