We propose a new solution concept to address the problem of sharing a surplus among the agents generating it. The problem is formulated in the preferences-endowments space. The solution is defined recursively, incorporating notions of consistency and fairness and relying on properties satisfied by the Shapley value for Transferable Utility (TU) games. We show a solution exists, and call it an O...

Economic value calculations are increasingly used to compare the predictive performance of competing models of asset returns. However, they lack a rigorous way to validate their evidence. This paper proposes a new methodology to test whether utility gains accruing to investors using competing predictive models are equal to zero. Monte Carlo evidence indicates that our testing procedure, that ca...

This study explores the current market value of the care provided by unpaid family members and friends to ill and disabled adults. Using large, national data sets we estimate that the national economic value of informal caregiving was $196 billion in 1997. This figure dwarfs national spending for formal home health care ($32 billion) and nursing home care ($83 billion). Estimates for five state...

made significant efforts to establish and improve their procedures for interest rate risk management, including using economic models of interest rates and related models of credit risk (Lopez 2001a, b).At the same time, bank supervisors worldwide, including the Federal Reserve, have been expanding their knowledge and oversight of interest rate risk management techniques. For example, U.S. bank...

In light of the recent economic crisis, a particular emphasis has been placed on the measurement of productivity and performance of agricultural sectors worldwide. This article deals with the assessment of the performance of the Czech agricultural sector using three measures: multifactor productivity, economic value added, and financial performance. The authors also compared the development of ...

This article discusses the relationship between economic development and one aspect of property rights, a statute of limitations defining time limits on ownership claims. The analysis centers on property rights in land. This article argues that the available development opportunities shape the time limits on ownership claims that maximize property values, which in turn creates an inherent under...

This study explores the interaction between innovations and financial markets using newly available data of China that present significant geographic variations in economic development. Empirical evidence suggests that provincial banking development encourages local innovations, and provincial intellectual property (IP) protection raises the market values of local firms. Firmlevel innovations l...

Over the last couple of decades, it has become a commonplace to claim that “institutions matter” for economic development. Yet, institutions are not exogenous but the result of human action. It is argued here that the values and norms held by substantial parts of society’s members are an important determinant of its institutions. It is further argued that values and norms have both a direct and...

This paper begins with a discussion of the role played by upgrading in the promotion of sustainable growth. Upgrading is discussed in two different contexts, that of industrial clusters and that of global value chains (GVCs). Drawing on global and African experiences, the paper addresses the upgrading agenda required to enable dynamic clusters to meet both domestic needs and progressively also ...