Journal of Economics and Finance

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

Articles from Vol. 26, No. 3, Fall

Black's Hypothesis and Developed Economies
Abstract This paper examines the relationship between the volatility of output growth and the average growth rate of output in developed economies using the Generalized AutoRegressive Conditional Hetereoskedasticity-in-mean (GARCHM) framework. The results...
Costly State Verification and Optimal Investment
Abstract We model a lender-borrower relationship in a CSV framework. The project available with the firm is characterized by first-order stochastic dominance. The lender audits the borrower to prevent the latter from strategic default. In this setup,...
Macroeconomy and the Well-Being of Low Income African American Families
Abstract By employing unit root testing and cointegration procedures, this paper is the first study of its kind to present empirical evidence showing higher inflation rate, lower unemployment, and increased real per capita gross domestic product decreased...
Market Index Returns, Macroeconomic Variables, and Tax-Loss Selling
Abstract This study provides the most direct macro-level test to date of the tax-loss selling hypothesis as an explanation of the January effect. By examining relationships between macroeconomic variables that should be related to tax-loss selling and...
Market Mispricings and Portfolio Allocation to Mutual Fund Classes
Abstract Major factors affecting Greek household budget flows to mutual fund classes with different risk-return profiles are studied, applying the flexible functional form of the Almost Ideal Demand System to analyse allocation to equity, bond, balanced,...
Revisiting Managerial Perspectives on Dividend Policy
Abstract We survey managers of Nasdaq firms that consistently pay cash dividends to determine their views about dividend policy, the relationship between dividend policy and value, and four common explanations for paying dividends. The evidence shows...
Using Simulation as a Tool in Selecting a Retirement Age under Defined Benefit Pension Plans
Abstract This paper examines how simulation modeling can be used to select a retirement age under defined benefit pension plans. This approach construes the variables affecting pension benefits as probabilistic variables. Simulations are then run to...
Why Firms Adopt and Discontinue New-Issue Dividend Reinvestment Plans
Abstract We examine several arguments-past performance, capital structure adjustment, and broadening the ownership base-involving why firms adopt and discontinue new-issue dividend reinvestment plans (DRPs). We test hypotheses for each argument by analyzing...