This paper develops a rational expectations model with multiple equilibrium unemployment rates where the price of capital may be unbounded above. I argue that this property is an important feature of any rational-agent explanation of a financial crisis, since for the expansion phase of the crisis to be rational, investors must credibly believe that asset prices could keep increasing forever wit...

energy is considered as an important input for agricultural products. a decrease in energy subsidy and its demand reduces agricultural outputs and raises the production costs. changes in production and costs may significantly affect welfare of the agricultural producers. the main objective of this study was to analyze the impact of increased energy prices (reduction in the subsidy) on the agric...

Firms increasingly follow an “always on” philosophy, publishing multiple pieces of firm-generated content (FGC) every day. Current methodologies used in marketing are unfit to unbiasedly capture the impact FGC disseminated intermittently throughout day on stock markets characterized by ultra-high-frequency trading. They also neither distinguish between permanent (i.e., long-term) and temporary ...

Abstract Using oil futures, we examine expectation formation and how it alters the macroeconomic transmission of shocks. Our empirical framework, where investors learn about persistence oil-price movements, successfully replicates fluctuations in futures since Late 1990s. By embedding this learning mechanism an estimated model, document that increase TFP-driven demand largely accounts for inves...

[1] Farmers make joint water and land use decisions for economic purposes based in part on water availability and reliability. A two-stage economic production model is developed to examine the effects of hydrologic uncertainty and water prices on agricultural production, cropping patterns, and water and irrigation technology use. The model maximizes net expected farm profit from permanent and a...

We show that the S-shaped hyperbolic tangent function of signed volume is appropriate to model the price impact of a trade. This model enables an implied true price to be obtained without relying on the quotes. We compare this implied true price with the quotes’ midpoint. For the 1,748 common stocks traded on the NYSE in 1997, we find that the implied true price is superior than the midpoint in...

We explore, for the first time in literature, how revenues of ship management companies respond to macroeconomic exogenous shocks. Using data ship-management Cyprus, we find evidence that a demand shock has largest impact on revenues, exhibiting an almost one-for-one relationship. If is permanent, observe ceteris paribus permanent effect revenues. Similarly, this occurs irrespective final relev...

Abstract This article is an empirical attempt to explore the relationship between sanctions (financial and non-financial), oil price shocks and Iran-Russian bilateral trade flows over the period 1991–2014. In contrast to earlier studies in which a gravity model has been estimated through a panel data approach, in this paper the authors apply a gravity model for only two countries and do the es...