The authors develop tests for mean-variance efficiency of international equity markets for ten OPEC countries. A Wald test that allows for time-varying variances of excess returns rejects a version of mean-variance efficiency. The source of the rejection is not entirely clear, so the authors use...

This paper examines two types of contract structures in a model where a trade union supplies labor to an industry, and sets the wage to maximize welfare. Firms' investment is endogenous, and the industry price is stochastic. Under short-term contracts, the union sets the wage after the firms'...

It has recently been argued that several fiscal contractions can, through their impact on expectations, lead to growth in consumption, investment, and employment. Since such contractions typically occur because adjustment has been delayed due to fear of aggravating unemployment, the authors...