We show that if sophisticated institutional managers and individual investors perceive tail-risks differently, then a new explanation for the pricing kernel puzzle emerges. We show, by example, that even a tiny difference in tail-risk perception by the two investor types can explain the pricing...

Theoretical, conceptual and estimational issues relevant to economies of size studies are discussed in this paper. Some of the issues discussed are the effects of technological change on the position and shape of the average cost curve over time, the relationship between farm size and relative...

The discounting of future benefits has long been one of the most controversial, and in many ways, unsatisfactory, aspects of benefit -cost analysis. This concern has been heightened by the rise of the environmental movement and, particularly by the debate over sustainable development. The...

The discounting of future benefits has long been one of the most controversial, and in many ways, unsatisfactory, aspects of benefit -cost analysis. This concern has been heightened by the rise of the environmental movement and, particularly by the debate over sustainable development. The...

Off-farm employment has become increasingly important as an aspect of resource adjustment and a source of income in Australian agriculture. However, it is surprising that there is a paucity of work on this topic reported in the agricultural economics literature. Therefore, we have drawn upon...