This paper proposes an explanation for why efficient reforms are not carried out when losers have the power to block their implementation, even though compensating them is feasible. We construct a signaling model with two-sided incomplete information in which a government faces the task of...

We provide a theoretical framework to explain the empirical finding that the estimated betas are sensitive to the sampling interval even when using continuously compounded returns. We suppose that stock prices have both permanent and transitory components. The permanent component is a standard...

It is well known that standard asymptotic theory is not valid or is extremely unreliable in models with identification problems or weak instruments [Dufour (1997, Econometrica), Staiger and Stock (1997, Econometrica), Wang and Zivot (1998, Econometrica), Stock and Wright (2000, Econometrica),...

On Demontre Qu'un Producteur D'un Materiau Recyclable Detenant une Position de Monopoleur Cherchera a Empecher L'entree Dans le Marche de Firmes Concurrentielles de Recyclage, a Moins Que le Cout du Recyclage Soit Tres Faible Par Rapport au Cout de Production du Materiau Primaire. on Demontre...

This paper extends the Competitive Storage Model by incorporating prominent features of the production process and financial markets. A major limitation of this basic model is that it cannot successfully explain the degree of serial correlation observed in actual data. The proposed extensions...

Cette communication situe la théorie des grands cycles économiques dans le contexte général des économies de marché. Il y est postulé que le cycle financier et économique international de longue période (50-60 ans) n'est pas une aberration statistique, mais est le résultat de...