When the risk of a devaluation is high this is likely to affect the purchasing behaviour of firms importing goods from abroad. A model is developed which shows optimal purchasing and inventory policies for firms in that situation. Another model is developed for the case when the value of a...

This paper shows how to value options with stochastic lives, i.e. options which may be cancelled but where the underlying stocks retain their value. The executive stock option, which is cancelled if the executive takes a job in another firm, is a typical example. The paper also contains a...

Preface -- Background and Summary -- 1 Introduction -- 1.1 The log normal distribution -- 1.2 The Pareto distribution -- 1.3 Randomness and economic markets -- 1. 4- A more precise presentation -- 1.5 The derivation of an equilibrium distribution by maximizing entropy -- 1.6 Conclusions -- 1...

I Theory and Debate -- 1 What is Neo-Ricardian Theory? -- 2 History Emphasizing Ricardo -- 3 The Sraffa System -- 4 The Capital Controversy -- 5 Income Distribution and Growth -- II Applications -- 6 Applications: An Introduction -- 7 Some Stability Problems: An Outline -- 8 Wage Earners’...