The logical derivation of the two-factors model (The CAPM) is not empirically testable. This has paved the way for new treatments of asset pricing. However, the deterministic approach taken by most economists has prevented them to create a more useful treatment to the problems of asset pricing...

Munkirs’ notions of Centralized Private Sector Planning and its derivations are very useful in order to give an alternative explanation to the most recent economic crisis. The crisis is the result of the clashes between the old CPSP and a new one based on recently created technology and...

De Moivre’s book “The Doctrine of Chances” (2) is thorough account of what was known about probability and annuities. The proof that is the object of this paper is included in the very last pages of the book (pages 235-243). The aim of the present paper is to explicate De Moivre’s first...

According to Katz [6] some of the basic notions of probability existed in ancient civilizations. In The Talmud and in Roman calculations of annuities there is some evidence of this. However, no record of numerical probability calculations exists. Hald [5], Bernstein [1] and Katz [6] agree that...

Intrinsically trustworthy agents never cheat. A society's willingness to trust and the quality of its institutions have their origins in the intrinsic trustworthiness of its citizens. Trustworthiness is the basis for maximizing output in economic exchange and in explaining differences in...

The instrumental variables strategy is commonly employed in empirical research. For correct inference using this econometric technique, the instruments must be perfectly exogenous and relevant. In fact, the standard t-ratio test statistic used in this context yields unreliable and often...

This paper introduces endogenous capital income tax rates as in Schmitt-Grohe and Uribe (1997), into the overlapping generations model with endogenous labor and consumption in both periods of life (e.g., Cazzavillan and Pintus, 2004). In contrast with the previous result that the existence of...

Israel’s policies regarding Lebanon have been dependent on public opinion, which is very volatile. The citizens of Israel did not favor the occupation of the security zone in South Lebanon because of the Four Mothers movement, and it influenced the government to withdraw military forces...

This research attempts a theoretical and quantitative analysis of authoritarian regimes enduring in the developing countries. We attempt computer visualization of the model developed by Acemoglu and Robinson in order to derive an empirical hypothesis easily. There is a reason for us to accept...

This document presents a Macroeconomic Consistency Model for a dollarized economy such as Ecuador. Based on a simply accounting framework that combined the social accounting matrix with the flow of funds, we integrate the different sectors of the economics through a matrix of income,...