VOLUME 1(2) • 2006
UNDERSTANDING THE DETERMINANTS OF MANAGERIAL OWNERSHIP
ABSTRACT. Chen et al. treat Japenese managerial ownership, firm investment and firm valuation as endogenous to the firm and model them in a three-equation simultaneous equation system. Elsinger et al. see that for the analysis of systemic risk, defined as the probability assessment of joint default ..
MARKET EFFICIENCY AND BEHAVIORAL FINANCE
ABSTRACT. By applying the collective wisdom on relative pricing of accruals and cash flows, Shivakumar's study helps sharpen strategies that are designed to take advantage of the post-earnings-announcement drift. Gruen et al. state that different views about the appropriate role of monetary policy i..
OPTIMAL MONETARY POLICIES AND MACROECONOMIC STABILITY
ABSTRACT. To avoid conditioning their estimation on whether or not there was a policy change, a fact that is only known ex post, Carpenter and Demiralp focus exclusively on anticipation of policy changes that took place at FOMC meetings. González remarks that bank investment in borrowing firms is dr..
ECONOMIC GLOBALIZATION AND THE CHALLENGES TO GOVERNANCE
ABSTRACT. Gray holds that the global free market is created by specific policies based on ideological commitment to economic liberalism, rather than being spontaneously generated. Storper distinguishes four dynamics that work differentially across economic sectors and world regions. Waltz fears that..
INTEREST AND PRICES
ABSTRACT. The problem of a weak domestic financial sector intermediating international capital flows is common to both the transition and developing economies (Kalyuzhnova and Taylor). Christiano et al. describe how they estimate a monetary policy shock, report estimates of how major macroeconomic v..
WHAT MAKES INVESTORS TRADE?
ABSTRACT. Gil-Bazo provides a theoretical analysis that relates the evolution of the risky asset return distribution over time to the optimal portfolio of a utility-maximizing investor. Gervais and Odean state that investors become less overconfident as they gain more experience in investment activi..
LEARNING ABOUT MONETARY POLICY RULES
ABSTRACT. Preston considers a potentially important source of model misspecification in the design of instrument rules: the assumed manner in which expectations are formed. Losses in one state enterprise would be made good by surpluses generated elsewhere in the system, the distribution between surp..
MONETARY POLICY, CRISES, AND TODAY'S GLOBAL ECONOMY
ABSTRACT. The task of monetary theory is a much wider one than is commonly assumed (Hayek). Beccalli et al. shift the focus from the traditional framework to the relationship between share prices and efficiency measures. Countries that open the capital account before eliminating severe macroeconomic..
CAPITAL MARKET EQUILIBRIUM AND CORPORATE FINANCE
ABSTRACT. In completely integrated financial markets, securities with identical risk command the same expected return irrespective of the market of trading; barriers to international capital flows exist that can cause segmentation of capital markets along national boundaries. If banks expect the fun..
RATIONAL EXPECTATIONS AND PERFORMANCE OF MONETARY POLICY
ABSTRACT. Pryor defines economic systems of developing nations in terms of clusters of complementary institutions, using 31 indicators of economic institutions to derive four quite different economic systems. Christiano et al. describe their model economy and display the problems solved by firms and..
THE INVESTMENT BEHAVIOR AND PERFORMANCE
ABSTRACT. Ekholm seeks to consider what investor overconfidence would imply for the trading behaviour of different types of investors, when new public information arrives on the stock market. Gil-Bazo analyzes empirically the effect of the investor's time horizon on his optimal asset allocation. The..
THE GEOPOLITICS OF CAPITALISM AND NEOLIBERALISM AS AN EMERGENT SYSTEM OF GLOBAL HEGEMONY
ABSTRACT. Globalization of trade, foreign direct investment, and production are not just about an emerging geography of flows but how flows fit into and adapt to existing territorial or place-based patterns of economic development (Agnew). Roberts et al. highlight how the neoliberal geopolitics of t..