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...

Large scale forest plantations in the Murray-Darling Basin may be embraced as a carbon sequestration mechanism under a Carbon Pollution Reduction Scheme. However, increased tree plantation will be associated with reduced inflows to river systems because of increased transpiration, interception...

Almost all aspects of the current policy debate over grain handling, transport and marketing turn on the problem of monopoly. The essential problem is that, in the presence of extensive scale economies, the perfectly competitive market of the textbooks cannot be sustained. Policy makers are left...

It is shown that parameter estimates in a regression with a logarithmic time trend are not invariant to the choice of the starting point of that time trend. Possible solutions to this problem are discussed and applied to data from a recent article in this Review where a logarithmic time trend...