This paper provides a model for valuing stocks that takes into account the stochastic processes for earnings and interest rates. Our analysis differs from past research of this type in being applicable to stocks that have a positive probability of zero or negative earnings. By avoiding the singularity at the zero point, our earnings-based pricing model achieves improved pricing performance. The...

Hawkins and Yin (Comput. Statist. Data Anal. 40 (2002) 253) describe an algorithm for ridge regression of reduced rank data, i.e. data where p, the number of variables, is larger than n, the number of observations. Whereas a direct implementation of ridge regression in this setting requires calculations of order O(np2 + p3), their algorithm uses only calculations of order O(np2). In this paper,...

An identity links the rate of economic growth, the speed of poverty reduction and changes in the distribution of income during some time period in a given country. A few authors used that identity to understand the causes for observed changes in poverty and to identify the exact role of economic growth in poverty reduction. Yet, many empirical cross-country studies of the relationship between g...

This paper introduces new similarity classifiers using the Heronian mean, and the generalized Heronian mean operators. We examine the use of these operators at the aggregation step within the similarity classifier. The similarity classifier was earlier studied with other operators, in particular with an arithmetic mean, generalized mean, OWA operators, and many more. The two classifiers here ar...

This paper explains why the overall stance of monetary policy is effected by both interest rates and the exchange rate, and hence why a Monetary Conditions Indicator can provide useful information about the stance of policy. Three output gap equations estimated in this paper reveal that the real interest rate and the real exchange rate both affect excess demand but that the real interest rate i...

energy as an important production factor has significant effects on economic growth. identifying the relationship between energy and economic growth can help to improve governmental energy policies. applying ardl and ecm methods, this paper examines the longrun and shortrun causality relationships between (1) energy consumption and economic growth and (2) energy consumption and employment in va...

i n the past decades, the effect of different tax amendments on various economic issues has been studied. the majority of these studies have avoided considering shadow economy as part of the calculation and analysis, and an issue, which has received little attention, is the relationship between green tax reforms and shadow economy, as for informal labor, which is well-connected to unemployment ...