This paper models the stochastic behavior of large-scale terrorism using extreme value methods. We utilize a unique dataset composed of roughly 26,000 observations. These data provide a rich description of domestic and international terrorism between 1968 and 2006. Currently, a credible...

An overlapping generational model of educational investment in a duallabor markets is presented in which education serves both as ascreening device and as investment in human capital. Labor marketdualism arises not only via the conventional technology (productivity)differential between a primary...

The growing interdependence of firms across the globe with seeming rise in the incidence of both intentional and unintentional security events (terrorism, food contamination, etc.), has exposed, and often contributed to, the vulnerabilities of many firms and their supply chain partners. It is...

The incidence of food security breaches has been on the rise over the past decade. The goal of this paper is to devise an optimum investment strategy by food companies (retailers and manufacturers) to mitigate exposure to catastrophic risks. To do this, we develop and estimate a simple...

In this paper, we study a sample of twelve African countries to examine the impact of the real exchange-rate volatility on their trade flows. In order to distinguish the distinct impact of the real exchange-rate volatility on their exports and imports, both in the short-run and long-run, we use...

Separating currency appreciations from depreciations and using nonlinear models in recent literature have improved discovering significant link between the trade balance and the exchange rate. We add to this growing literature by considering the experience of Bangladesh with 11 trading partners....

Asymmetry analysis is a new norm in applied research and the link between the trade balance and the exchange rate is no exception. In this paper we investigate the asymmetric response of the trade balance of each of the 60 industries that trade between Malaysia and Japan. We find short-run...

Conventional unit root tests have mostly failed to validate the PPP. Quantile-based unit root test by previous research have provided some support for the PPP. In this paper we take an additional step and incorporate sharp shifts and smooth breaks into the quantile-based unit root test and...

Previous studies that assessed the impact of exchange rate changes on a country’s inpayments and outpayments assumed that such effects are symmetric. The evidence from the literature reveals that import and export prices react to exchange rate changes in an asymmetric manner. This implies that...

In investigating the short run and the long run impact of currency depreciation on Pakistan’s trade balance, previous studies have either relied on using bilateral trade data between Pakistan and her trade partners or between Pakistan and the rest of the world and have found not much support...