We use a data set from market participants in the Taiwan Stock Exchange Capitalization Weighted Stock Index options markets to demonstrate a strong positive relationship between prior trading outcomes and subsequent risk taking. In particular, investors in this market take above-average risks in...

A number of uncertainties associated with national air pollution policy are currently being analyzed by the United States Congress, the Environmental Protection Agency (EPA), and the Department of Energy (DOE) with the aid of a large-scale model of electric utility plant emissions under the 1983...

A step-by-step summary of an empirical time series analysis of the effects of a newly constructed dam on river flow rate is given. A model of river flow rate for the 522 weeks of data is built through the transfer function/intervention model development processes of Box-Jenkins/Box-Tiao....

An experiment with plant layout formulated as a quadratic assignment problem gave the following results: (1) The CRAFT algorithm does as well as human subjects in solving the plant layout problem; (2) CRAFT does better as problem size increases if the human subjects have no prior knowledge of...

In choices between consumption and investment the consumer's objective is to maximize the expected utility of lifetime consumption. This paper outlines a procedure for constructing cardinal utility functions which capture both a consumer's willingness to trade off consumption between years and...

The paper presents a model that determines when (at which output price level) it is optimum for a firm to invest in environmental technologies and which are the main parameters that affect this decision. Our analysis shows that firms require high output price levels to be induced to invest in...

Practitioners needing estimates of a firm's equity cost of capital have long relied on the Capital Asset Pricing Model (CAPM). Recent evidence casts renewed doubt on the validity of the CAPM and beta. However, there is not much evidence to gauge the importance of the rejections of the CAPM in a...

We consider a capital budgeting problem in which each potential project requires the performance of a known set of activities. In general, these sets of activities are not mutually exclusive. However, when a particular activity is common to the requirements of multiple projects, a single...

This paper develops models for discount rates that are adjusted for the interest tax shields of an infra-marginal firm in a general tax equilibrium where there is cross-sectional variation in corporate tax rates. Under the assumption that the firm optimally maintains a predetermined debt ratio,...