Opportunity Cost and the Incidence of a Draft Lottery Military conscription implicitly taxes draftees. Those who would have volunteered at the market wage may be forced to serve for lower wages, and those with higher opportunity costs may be forced to serve regardless, yet little is known about the distribution of this burden. We exploit the Danish draft lottery to estimate the causal effect of...

This paper examines the effect of introducing insider tratlin~; restrictions on the behaviour of the Amsterdam Stock Exchange. From 198'7 on, insiders are no longer allowed to trade two months before an annual earnings announcement. The results indicate that stocks became less liquid (when liquidity is measured by trading volume) when insiders were not allowed to trade. We also find some eviden...

ÖZ
 Bu çalışmanın temel amacı BRICS ve MIST ülkelerine ait borsalar arasındaki getiri volatilite etkileşimi araştırmaktır. Çalışmada 04.01.2004 ile 29.12.2019 dönemine haftalık verileriyle VAR-EGARCH modeli kullanarak araştırma gerçekleştirilmiştir. Genel olarak ülkelerinin borsaları arasında olduğu tespit edilmiştir. Elde edilen bir diğer sonuç ise Çin, Güney Afrika Türkiye borsalarının a...

Earnings are riskier and more unequal for households born in the 1960s 1980s than those 1940s. Despite improvements financial conditions, younger generations less likely to be living their own homes older at same age. By using a life-cycle model with housing portfolio choice that includes flexible earnings risk aggregate asset price risk, I show changes dynamics account large part of reduction ...

Barberis, Shleifer, and Vishny (1998) construct a model in which investors use the prevalence of past trend reversals as an indicator of the likelihood of future reversals. While such “regime-shifting” beliefs are consistent with a variety of psychological theories, other contrary predictions are consistent with the same theories. We report two experiments with MBA-student participants that str...

This paper provides a dynamic rational expectations equilibrium model in which investors have heterogeneous information and investment opportunities. Informed investors privately receive advance information about future earnings that is unrelated to current earnings. In response to good advance information, stock prices increase and informed investors act as trend chasers, increasing their inve...

The realized size and value premia reflect earnings-induced price surprises that do not fit the rational pricing story. In addition, they seem to have little to do with systematic risks. This is because the majority of value or small firms with persistently high systematic risks are not rewarded with a premium. The premium happens, as a price adjustment, only to the subset of migrating firms wh...

Regression and neural network models of wage determination are constructed where the explanatory variables include detailed information about the impact of school curricula on future earnings. It is established that there are strong nonlinearities and interaction effects present in the relationship between curriculum and earnings. The results have important implications in the context of the hu...

This paper examines the relationship between the board structure of UK firms and the accuracy of individual analysts’ earnings forecasts with respect to information asymmetry and agency theory. We hypothesize that managers of firms complying with the recommendations of The Code of Best Practice may have “less to hide” and, subsequently, provide more information to outsiders (including analysts)...

In a continuous-time economy with complete markets, we study how the heterogeneity in the individual consumers’ risk tolerance and impatience affects the representative consumer’s risk tolerance and impatience. We derive some formulas, which indicate that the representative consumer’s impatience decrease over time, and whether his risk tolerance increases or decreases over time depends on the s...