This paper assesses the ability of general equilibrium models of asset pricing using two recently developed sets of preferences to quantitatively account for the observed variability in the Canadian term structure of interest rates. the preference structures are non-expected utility and habit...

This research considers the positive theory of monetary integration in a general equilibrium monetary model of the world economy. The analysis demonstrates that, in the face of uncertainty and incomplete asset markets, participation in a monetary union may be welfare improving since it...