This study analyzes the behavior and performance of 353 investment newsletters that make asset allocation recommendations during a period covering more than 21 years (June 1980 — November 2001). Newsletters change their asset mix between equity and cash using relatively simple rules that are strongly influenced by past market returns while macro-economic variables have only a very weak influenc...

Why do potentially inflated credit ratings affect rational, well-informed creditors’ bond investment decisions? What are credit ratings’ effects on firms’ behavior? We resolve these questions by modeling a credit rating agency (CRA) as a certified expert who transmits information to creditors with coordination incentives and dispersed beliefs. In the unique equilibrium, high credit ratings are ...

The explanation of aggregate and sectoral investment behavior has been one of the less successful endeavors in empirical economics. Existing econometric models have had little success in explaining or predicting investment spending. This may be because most such models fail to account for the irreversibility of most investment spending. With irreversibility, changes in the riskiness of future c...

The research at University College London School of Medicine (UCLSM) is supported by the Wellcome Trust, Action Research, the Special Trustees of University College Hospital, and the Muscular Dystrophy Group of Great Britain. The studies have been carried out with the assistance of Dr. P. S. Tofts, Mr. D. Delpy and Mr. A. Chu of the Department of Medical Physics (UCLSM), and Mr. N.Taylor of Kin...

System-initiated digressive proposals may be used to introduce new and unexpected information into automated telephone services. These digressions may be viewed as particularly pronounced forms of unsolicited interruptions as they contain information not directly related to the caller’s intended activity. In human–human conversation, interruptions are considered to be speech acts which intrinsi...

In 1981, Paris and Wilkie [28] indicated it was an open question whether IΣ0 would satisfy the Second Incompleteness Theorem for Herbrand deduction. We will show that some specially formulated axiomizations for IΣ0 can evade the Herbrandized version of the Second Incompleteness Theorem.

The best predictor of current investment at the firm level is lagged investment. This lagged-investment e§ect is empirically more important than the cash-flow and Q e§ects combined. We show that the specification of investment adjustment costs proposed by Christiano, Eichenbaum and Evans (2005) predicts the presence of a lagged-investment e§ect and that a generalized version of their model is c...

Juliana Bernhofer⇑, Francesco Costantini and Matija Kovacic⇑ Bernhofer is an honorary fellow (“cultrice della materia”) at the Ca’ Foscari University of Venice a researcher Free Bozen-Bolzano, Faculty Economics Management; associate professor in linguisticsat Udine, Department Humanities Cultural Heritage Studies. Kovacic (“cultore Ca’Foscari Venice, Economics, European Commission, Joint Resear...