We study industries where the price that a firm sets serves as an investment into lower cost or higher demand. We …

trade price-contingent securities (derivatives) to insure against the risks arising from this uncertainty. I establish four … with price insurance) in this framework. A second is that equilibria with price insurance are Pareto efficient. I give … conditions under which agents are fully insured at an equilibrium. Finally I show that agents' price expectations matter in the …

(RFS). Understanding the price dynamics of the D4 RIN is important for understanding the RFS because its price sets a … ceiling on the ethanol RIN (D6) and because some observers have suggested that RIN price fluctuations are too large to be … explained by economic theory. We use option pricing theory to develop a model of the D4 RIN in terms of its economic …

and relative price informativeness in dynamic environments with rich heterogeneity across investors (regarding signals … and non-stationary asset payoffs. We implement our methodology empirically, finding stock-specific measures of price … informativeness for U.S. stocks. We find a right-skewed distribution of price informativeness, measured in the form of the Kalman gain …

of third-party payment interact to create substantial difficulty in measuring the price and output of health care. This …

This paper presents a new approach to assess the role of price mismeasurement in the productivity slowdown. I invert …-Douglas production function, output price mismeasurement only should affect the latter. Contrary to the mismeasurement hypothesis, I find …

This paper presents evidence on the amount of price rigidity that exists in individual transaction prices. Using the … important findings are: 1.The degree of price rigidity in many industries is significant. It is not unusual in some industries … commodities, the correlation of price changes across buyers is very low. 3.There is no evidence that there is an asymmetry in …