The research for this paper focuses on the implied expected exchange rates between the U.S. dollar and the Deutsche Mark. We use one year debt yield and one year inflation forecasts to derive expected exchange rates based on uncovered interest arbitrage and on the purchasing power parity...

In an earlier paper published in this journal, Michael Bond and Gerald Smolen (1986) set out to test for the presence of the Darby‐Feldstein effect. They regressed the nominal rate of taxable long‐term securities on the nominal yield of long‐term tax exempt municipal securities. They...

William Gissy (1987) is absolutely correct when he asserts that the existence of a complete inverted Fisher Effect renders our test for the Darby Effect a simple measure of tax arbitrage. His mathematical development of this is well done and completely valid. Our statement on page 59 of our...

Current antitrust doctrine seemingly accepts average variable cost as one possible boundary between competitive and predatory pricing. Certain authors contend, however, that equally efficient rivals can sometimes be excluded from a market even when a dominant firm prices above its own average...

Price stabilization in international commodity markets is a main element of the North‐South dialogue. Within the Integrated Programme on Commodities (IPC) of UNCTAD, it is intended to create buffer stocks for 10 core commodities: sugar, natural rubber, cocoa, coffee, tea, cotton, jute, hard...

The relationship between the amount of executive compensation and the size of the firm has long been a disputed area of economics. Baumol (1959) was among the first to observe that firm size and executive compensation appear to be positively correlated. This view was further supported by the...

In spite of the large volume of empirical evidence in favor of the monetary explanation of inflation, in many circles the phenomenon is still commonly attributed to other causes. A popular view, both at the level of financial press as well as in academic discussions, holds that the sustained and...

In the last two decades there has been considerable progress made in the development of alternative estimation techniques to ordinary least squares (OLS) regression. The search for alternative estimators has no doubt been motivated by the observance of erratic OLS estimator behavior in cases...

Since Jensen and Meckling [1976] first introduced the concept of an agency cost of debt, most research on the agency cost of debt has centered on who bears these costs. Jensen and Meckling's original contention was that if bondholders have rational expectations, then the owner‐manager should...

Professor Richard Timberlake (1984) recently suggested that the Federal Reserve System (Fed) was made unnecessary by the clearinghouse loan certificate (CLOC). This paper presents evidence that the Fed was rendered unnecessary by Aldrich‐Vreeland Act Currency (AVAC).