Efficiency wage models typically study the determination of wages and effort levels in the context of a labour market where the supply side is competitive. In this paper, the authors examine the effects of unionization on wages and effort. In addition to the monitoring technology where a noisy...

The authors apply the original variance bounds tests to the present value model for the U.K. stock market and amend these tests to take account of revisions in the model's parameters. They show that variance bounds tests that correct for this are no longer violated. However, they claim there is...

"We evaluate whether the market reacts rationally to profit warnings by testing for subsequent abnormal returns. Warnings fall into two classes: those that include a new earnings forecast, and those that offer only the guidance that earnings will be below current expectations. We find...

We contribute to the debate over whether forecastable stock returns reflect an unexploited profit opportunity or rationally reflect risk differentials. We test whether agents could earn excess returns by selecting stocks which have a low market price compared to an estimate of the fundamental...

A number of recent papers have reported evidence that stock prices are more volatile than is consistent with efficient markets. We argue that the excess volatility tests address a definition of efficient markets that makes an extreme information assumption. We go on to test a weaker definition...

The decision of a committee is determined jointly by the voting process it adopts and the composition of its membership. The paper analyses the process through which committee members emerge from the eligible population and traces the consequences of this for the decisions of the committee. It...