This paper introduces profitability uncertainty into an infinite-horizon variation of the classic Holmstrom and Milgrom (1987) model, and studies optimal dynamic contracting with endogenous learning. The agent's potential belief manipulation leads to the hidden information problem, which makes...

A variable rate demand obligation (VRDO) is a tax-emept municipal bond whose interest rate resets on a periodic basis. In addition, its bondholders have a "tender" option to liquidate their positions at par, exposing the issuer to possible runs. The VRDO market experienced large-scale runs in...

Since high temperature superconducting magnetic energy storage system (HT SMES) has attracted significant attention for their fast response in milliseconds, high efficiency (cyclic efficiency over 95%) and unlimited times of charging and discharging cycles, it can be used for system stabilizing...

High-temperature superconducting magnetic energy storage systems (HTS SMES) are an emerging technology with fast response and large power capacities which can address the challenges of growing power systems and ensure a reliable power supply. China Electric Power Research Institute (CEPRI) has...

This article endogenizes information acquisition and portfolio delegation in a one-period strategic trading model. We find that, when the informed portfolio manager is relatively risk tolerant (averse), price informativeness increases (decreases) with the amount of noise trading. When noise...

We analyze event abnormal returns when returns predict events. In fixed samples, we show that the expected abnormal return is negative and becomes more negative as the holding period increases. Asymptotically, abnormal returns converge to zero provided that the process of the number of events is...

Many data mining algorithms can only deal with discrete data or have a better performance on discrete data; however, for some technological reasons often we can only obtain the continuous value in the real world. Therefore, discretization has played an important role in data mining....

This paper offers an ambiguity-based interpretation of variance premium - the differ- ence between risk-neutral and objective expectations of market return variance - as a com- pounding effect of both belief distortion and variance differential regarding the uncertain economic regimes. Our...