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 level of effort which would be set by a firm hiring in a competitive labor market is contrasted with the effort level which would be chosen by a utilitarian trade union. Copyright 1992 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

The authors estimate a price-conditional vector autoregression for individual company dividends and this is used to forecast future dividends. Stocks are then ranked by the ratio of their current price relative to future dividend forecasts. This ranking is shown to forecast returns, using...

The excess volatility approach to testing the rational expectations-efficient markets hypothesis has focused on the time series properties of an aggregate stock market index. In this paper, the authors examine another dimension of volatility and study cross-section data on the stock market...

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...

"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...