The sensitivity of bond rates to macro variables appears to vary both over time and over forecast horizons. The latter may be due to differences in forward rate term premiums and in bond trader perceptions of anticipated policy responses at different forecast horizons. Determinacy of policy...

Monetary policy evaluation using structural macro models suggests that historical monetary policy responds less aggressively to inflation and the output gap than would an optimal policy rule. However, these results are obtained using models with constant term premia. This paper shows how term...

The expectations hypothesis is a theory of the term structure of interest rates that describes a conventional view of the transmission mechanism of monetary policy. According to the expectations hypothesis, bond rates are related to current and expected movements in the policy-controlled rate....

Forecasts by rational agents contain embedded initial and terminal boundary conditions. Standard time series models generate two types of long-run quot;endpointsquot;---fixed endpoints and moving average endpoints. Neither can explain the shifting endpoints implied by postwar movements in the...

Surveys provide direct information on expectations, but only short histories are available at quarterly frequencies or for long-horizon expectations. Longer histories typically contain only semi-annual observations of short-horizon forecasts. The authors fill in the gaps by constructing a...

Let Z = {Z(t), t ≥ 0} be a semimartingale reflecting Brownian motion that lives in the three-dimensional non-negative orthant. A 2002 paper by El Kharroubi, Ben Tahar and Yaacoubi gave sufficient conditions for positive recurrence of Z. Recently Bramson, Dai and Harrison have shown that...

This paper examines CEO compensation, with an emphasis on the power of CEOs to influence their own compensation by managing the compensation process. It analyzes the CEO's power over the board of directors and the political tactics used by the CEO to manage the board and its compensation...

Let Z = {Z(t), t ≥ 0} be a semimartingale reflecting Brownian motion that lives in the three-dimensional non-negative orthant. A <CitationRef CitationID="CR7">2002</CitationRef> paper by El Kharroubi, Ben Tahar and Yaacoubi gave sufficient conditions for positive recurrence of Z. Recently Bramson, Dai and Harrison have shown that...</citationref>

Prior to changes in the Western Australian legislation in 1993 an injured worker could sue his or her employer for damages at common law irrespective of the seriousness of injury or size of damages. A common law action is conditional on the personal injury being sustained during the course of...