We provide an explicit solution to a standard Cash-in-Advance model with production that provides the relationship between consumption smoothing and the excess volatility of asset returns. Preferences are represented by a constant relative risk aversion utility function, while the production...

This paper derives closed-form solutions for asset returns, investment, consumption and inflation in an economy with multi-good Cobb-Douglas production and consumer preferences as in Epstein and Zin (1991). The implied solutions are relatively simple, with an index of aggregate marginal product...

This paper argues that the stock market is an important channel of monetary policy. Monetary policy affects real economic activity because inflation levies a property tax on stocks in addition to an income tax on dividend payments. Inflation thus taxes stocks more heavily than it does bonds....

The paper examines the slowdown of lending by large U.S. banks over the period 2007Q3 - 2009Q2, focusing on: (i) whether capital or liquidity was the binding constraint; (ii) factors influencing banks’ decision to hold capital; and (iii) their pricing behavior. Using quarterly data for the...

How brand slogans can influence and change the consumers’ perception of image of products has been a topic of great interest to marketers. However, it is a non-trivial task to evaluate how brand slogans affect their customers’ emotions and how the emotions influence the customers’...

In this study we use Taiwan as a case study to provide an economy-wide analysis of impacts on Taiwan of WTO tariff reduction schemes with different combinations of thresholds and reduction rates. The model we utilized in this study is Taiwan General Equilibrium Model with a WTO module...

Purpose: The purpose of this paper is to establish an integrated framework of the antecedents of enforcement after contract violations in construction projects and to examine whether contract provisions (control and coordination provisions) and trust (goodwill and competence trust) affect...

Purpose: This study examines whether a higher interest alignment between online travel agencies (OTAs; hosting platform) and hotels (business owners) will intensify review manipulation activities. Design/methodology/approach: With a panel data set collected from a Chinese online travel agency...