There is an extensive literature claiming that it is often difficult to make use of arbitrage opportunities in financial markets. This paper provides a new reason why existing arbitrage opportunities might not be seized. We consider a world with short-lived securities, no short-selling...

When the asset market is incomplete, competitive equilibria are constrained suboptimal, which provides a scope for pareto improving interventions. Price regulation can be such a pareto improving policy, even when the welfare effects of rationing are taken into account. An appealing aspect of...

Today, it is almost inevitable that software is licensed, rather than sold outright. As a part of the licensing policy, some protection mechanisms, whether hardware, legal or code-based, are invariably built into the license. The application of such mechanisms has primarily been in the realm of...

Research has documented that immigrants have moved in large numbers to almost every metropolitan area and select rural areas in the US. In the midst of these demographic shifts, the country has experienced a profound recession. To date, there has been little research on the impact of the...

Traditional assimilation theory predicts immigrant adaptation into society as a function of catching up to status of U.S.-born non-Hispanic white households. Recent Taiwanese immigrants, rather than climbing socioeconomic ladders overtime, may have surpassed the socioeconomic status of whites...

This paper, using 1990 census microdata, investigates immigrants’ residential location choices that are relevant to urban sprawl. Regression models of two location choices are separately estimated, in which households choose from areas with different levels of residential density and new...

We revisit cumulative slicing estimation (CUME; Zhu et al., 2010) from a different perspective to gain more insights, then refine its performance by incorporating the intra-slice covariances. We also prove that our new method, under some conditions, is more comprehensive than CUME.

We propose a link-free procedure for testing whether two multi-index models share identical indices via the sufficient dimension reduction approach. Test statistics are developed based upon three different sufficient dimension reduction methods: (i) sliced inverse regression, (ii) sliced average...

Classical sufficient dimension reduction methods are sensitive to outliers present in predictors, and may not perform well when the distribution of the predictors is heavy-tailed. In this paper, we propose two robust inverse regression methods which are insensitive to data contamination:...

The present paper establishes a two-sector monopolistic competition model to investigate how international factor mobility influences the skilled–unskilled wage inequality when the monopolistically competitive sector producing final goods is characterized by various types of production cost...