Skewness of return has been suggested as a reason why agents might choose to gamble, ceteris paribus, in cumulative prospect theory (CPT). We investigate the relationship between moments of return in two models where agents choices over uncertain outcomes are determined as in CPT. We illustrate...

In two recent contributions Lothian and Taylor, and Cuddington and Liang, produced empirical evidence that annual data for the dollar-sterling real exchange rate spanning two centuries exhibited a non-linear deterministic trend. This trend could be proxying Harrod-Balassa-Samuelson effects....

In this paper we demonstrate, using conventional logit analysis, how a number of non-financial variables, and more particularly the time lag in publishing annual accounts, can discriminate between failing and non-failing quoted firms up to three years before failure. We then, in a novel way,...