This paper simplifies and extends the literature on habit‐forming consumption. When addictive and nonaddictive goods are consumed, complements may become substitutes and normal nonaddictive goods may become inferior. Alternatively, when all goods are equally addictive, consumers favor goods...

The purchasing power parity hypothesis is investigated within a highly economically integrated set of nations, namely the European Monetary System. We use the Phillips‐Hansen Fully Modified Ordinary Least Squares procedure, which for the first time allows for an unrestricted cointegration test...

This study explains variance in one‐year abnormal returns of corporate stockholder investees. Results indicate that investee abnormal returns are negatively associated with the extent of the corporate stockholder's initial percentage of ownership, but the investee abnormal return is positive...

The history and divestiture of the Bell System is of immediate importance to several economies around the globe, especially those undergoing the change from state owned operations to private ownership. Similarly, those economies experiencing rapid expansion of telecommunications can also learn...

This study surveys the money market integration literature over the past three decades. Generalizations include (1) global money market integration is increasing over time although evidence of remaining market segmentation is prevalent and (2) emerging Asian capital markets are rapidly becoming...

This paper examines and updates an earlier study of the liquidity of an extensive array of common stocks traded on NYSE/ASE/NML‐NASDAQ. It reports apparent variances in liquidity due to trading location and other variables. The paper suggests causes for these differences.

This paper presents a model of long distance telephone demand based on route‐specific short‐haul (intraLATA) calling minutes. The data used in the estimation comes from 2,813 intraLATA long‐distance routes in the state of Florida for 1990. Route‐specific information (mileage, minutes of...

The State of Delaware recently passed a new banking law that allows banks and bank affiliates chartered in Delaware to sell and underwrite insurance nationwide. The new laws provide two potential benefits to banks; (1) increased profits from selling insurance and (2) reduced interest rate risk...