Journal of Economics and Finance

Publishes theoretical and empirical articles in the general areas of economics and finance. 

Articles from Vol. 28, No. 2, Summer

An Empirical Analysis of Market and Institutional Mechanisms for Alleviating Information Asymmetry in the Municipal Bond Market
AbstractThis article examines how various market and institutional mechanisms resolve information asymmetry problems in the municipal bond market in the U.S. Information asymmetry exists in this market since a significant percentage of the investors...
Read preview Overview
A Time-Varying Volatility Approach to Modeling the Phillips Curve: A Cross-Country Analysis
AbstractThis research examines the Phillips curve price adjustment mechanism allowing for the conditional variance of inflation to be time varying. Specifically, we estimate ARCH and GARCH models of inflation for Canada, Japan, and the U.K. The results...
Read preview Overview
Compensation-Based Stock Trading by Corporate Executive and Aggregate Management Ownership of the Firm: Some Additional Evidence
AbstractManagers place a low value on equity-based compensation because it exposes them to the risk of the firm. Such undervaluation and the need to achieve diversification may force a manager to sell his own stock of the firm in response to equity-based...
Read preview Overview
Dating Structural Changes: An Illustration from Financial Deregulation
AbstractRecent developments in econometrics emphasize the importance of testing for structural breaks in time series analysis. The typical event study of financial economics examines abnormal stock market returns around arbitrarily established dates....
Read preview Overview
Duration Dependence Testing for Speculative Bubbles
AbstractPrior research has employed a number of methods to test for speculative bubbles in asset prices, including a method based on the concept of duration dependence. This study explores whether duration dependence tests for speculative bubbles are...
Read preview Overview
Firm Risk, Investment, and Employment Growth
AbstractThis paper examines the relation between firm risk and growth of Finnish firms. The results reveal a negative relation between risk (total and unsystematic risk) and firm investment. This negative relation is robust to the choice of estimation...
Read preview Overview
International Mergers and Acquisitions: A Jump Diffusion Model Application
AbstractThis paper empirically investigates international mergers and acquisitions (M&As) of foreign targets and bidders by analyzing the stock price behavior of the firms involved. The jump diffusion model is employed to study the effects of the...
Read preview Overview
Modeling Volatility in Sector Index Returns with Garch Models Using an Iterated Algorithm
AbstractFinancial market participants are interested in knowing what events can alter the volatility pattern of financial assets and how unanticipated shocks determine the persistence of volatility over time. The present paper studies these issues by...
Read preview Overview
Stock Market Volatility, the News, and Monetary Policy
AbstractThe dynamic relationship linking the volatility of equity prices with "the news " and the expected path for monetary policy is investigated Previous results that link the impact of the news about real activity to changes in current and future...
Read preview Overview
The Causal Relation between Government Revenue and Spending: Evidence from Egypt and Jordan
AbstractIn investigating the causal relation between government revenue and spending, our empirical results support the tax-and-spend hypothesis for Egypt and the fiscal synchronization hypothesis for Jordan. Breaking away from these historical trends...
Read preview Overview