36 month buy-and-hold returns are calculated for a recent sample of initial public offerings (IPOs) on UK stock markets in order to test the robustness of earlier results which suggest that IPOs deliver abnormally low long-run returns. A bootstrapped and skew-adjusted t statistic is employed. Overall, there is little evidence of significant abnormal long-run performance. Further tests reveal th...

This paper presents a general equilibrium model of a two-sector production economy with irreversible real investment. Irreversibility of investment is the most prominent feature of the productive sector. It restricts capital accumulation, affecting firms’ investment decisions, which in turn determine properties of asset prices. Thus, this model provides a framework for connecting stock returns ...

Entrepreneurial activity has been argued to be an important stimulus of growth, especially in less developed countries. However, measuring the returns to entrepreneurship is made difficult due to potential selection on the basis of unobservable abilities and the agents’ imperfect information about their own comparative advantage in entrepreneurship. I develop a novel extension to projection-bas...

Recent empirical studies show that the squares of high-frequency stock returns are long-range dependent and can be modeled as fractionally integrated processes, using, for example, long-memory stochastic volatility models. Are such long-range dependencies common among stocks? Are they caused by the same sources of variation? In this paper, we classify daily stock returns of S&P 500 companies on...

Are There Asymmetries in the Effects of Training on the Conditional Male Wage Distribution? We use a quantile regression framework to investigate the degree to which work-related training affects the location, scale and shape of the conditional wage distribution. Human capital theory suggests that the percentage returns to training investments will be the same across the conditional wage distri...

Increasing Returns to Education and the Skills Under-Investment Trap We model educational investment and labor supply in a competitive economy with home and market production. Heterogeneous workers are assumed to have different productivities both at home and in the workplace. We investigate the degree to which there is under-investment in human capital, and examine the deadweight losses that a...

A certain prima facie implausible idea about the semantics of donkey pronouns has found a surprising number of adherents (Davies 1981, Lappin 1989, Neale 1990, Lappin and Francez 1994, Yoon 1994, 1996, Krifka 1996a) and even crept into a textbook (Larson and Segal 1995).1 According to this idea, syntactically singular donkey pronouns like it in (1) are semantically numberless, so that (2) provi...

This study investigates the impact of macroeconomic variable shocks on industrial and financial stock returns in Borsa Istanbul. To this end, we use generalized forecast error variance decompositions impulse responses. The results show that inflation, growth rate money supply, exchange provide significant information for forecasting market volatility. production appears to be negligible, both s...