We consider an ordinal optimization problem, where a decision maker learns the statistical characteristics of a number of systems using sequential sampling in order to ultimately determine the "best" one (with high probability). In so doing, the decision maker postulates a parametric model which...

I investigate how firms' environmental responsibilities affect expected stock returns. Using the environmental pillar score from the ASSET4 ESG dataset, I find that greener stocks have lower expected returns. This greenium remains significant after controlling for systemic and idiosyncratic...

This paper studies quantitative implications of model economies that exhibit multiple equilibria. The goal is to assess two interrelated issues. First, do economies with multiple equilibria have falsifiable predictions? Second, is identification possible in economies that exhibit multiple...

European Union Guidelines have been for long the cornerstone of the evaluation of European funding for projects. An important aspect of this method is the general exclusion of taxation from the computation. We argue that when applied on projects that shift demand from a highly taxed mode to a...

The paper discusses how current inflation targeting should be modeled, and argues that it is better represented as a commitment to a targeting rule (a rule specifying operational objectives for monetary policy or a condition for the target variables), than as a commitment to a simple instrument...

Using data on gross output for two-digit manufacturing industries, we find that an increase in the output of one manufacturing sector has little or no significant effect on the productivity of other sectors. Using value-added data, however, we confirm the results of previous studies which find...

This paper proposes a procedure for the determination of the minimal length of the historical time series of daily deposit variations in accordance with an institution’s specific risk tolerance. In a previously released paper we developed a methodology to ascertain an institutional specific...

This article presents a Stata module to enable fixing the value of the correlation between the unobservables in Heckman models. These commands can solve two practical issues. First, for situations in which a valid exclusion restriction is not available, these commands enable exploring how the...

The PPP puzzle is based on empirical evidence that international price differences for individual goods (LOOP) or baskets of goods (PPP) appear highly persistent or even non-stationary. The present consensus is these price differences have a half-life that is of the order of five years at best,...