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Noise Trader Risk in Financial Markets
We present a simple overlapping generations model of an asset market in which irrational noise traders with erroneous stochastic beliefs both affect prices and earn higher expected returns. TheExpand
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Positive Feedback Investment Strategies and Destabilizing Rational Speculation
Analyses of the role of rational speculators in financial markets usually presume that such investors dampen price fluctuations by trading against liquidity or noise traders. This conclusion does notExpand
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Hysteresis and the European Unemployment Problem
European unemployment has been steadily increasing for the last fifteen years and is expected to remain very high for many years to come. In this paper, we argue that this fact implies that shocksExpand
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Central Bank Independence and Macroeconomic Performance: Some Comparative Evidence
This note uses information on a sample of sixteen OECD countries to assess the relationship between central bank independence and macroeconomic performance. As previous work suggests, politicallyExpand
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This paper uses cross-sectional and longitudinal data to examine differences in pay for equally-skilled workers in different ind ustries. The major finding is that there is substantial dispersion inExpand
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Equipment Investment and Economic Growth
Using data from the United Nations Comparison Project and the Penn World Table, we find that machinery and equipment investment has a strong association with growth: over l9&)?l95 each percent of GDPExpand
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Mean Reversion in Stock Prices: Evidence and Implications
This paper analyzes the statistical evidence bearing on whether transitory components account for a large fraction of the variance in common stock returns. The first part treats methodological issuesExpand
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Gamma Discounting
By incorporating the probability distribution directly into the analysis, this paper proposes a new theoretical approach to resolving the perennial dilemma of being uncertain about what discount rateExpand
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Breach of Trust in Hostile Takeovers
The paper questions the common view that share price increases of firms involved in hostile takeovers measure efficiency gains from acquisitions. Even if such gains exist, most of the increase in theExpand
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An aging society: opportunity or challenge?
"This paper steps back from the current political debate [in the United States] over the social security trust fund and examines the more general question of how serious a macroeconomic problem agingExpand
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