This paper employs a structural VAR procedure to test some fundamental propositions of the business cycle using a developing economy framework. The focus of the paper is on KBC, MBC and RBC theories as well as on the alternative view, which has been propagated mainly by Sims. The empirical...

We adopt a quadratic approach to the valuation of the option to exchange one asset for another, when the option owner has the right to exercise before option expiration. Accurate pricing results are obtained and tested against competitive models in the literature, building on the hypothesis that...