Female job satisfaction: can we explain the part-time puzzle?

Can the mirror world explain the ortho - positronium lifetime puzzle ?

We suggest that the discrepant lifetime measurements of ortho-positronium can be explained by ortho-positronium oscillations into mirror ortho-positronium. This explanation can be tested in future vacuum experiments. [email protected] [email protected] A “mirror universe” is predicted to exist if parity and/or time reversal are unbroken symmetries of nature [1,2]. The idea is th...

Can Perpetual Learning Explain the Forward Premium Puzzle?∗

Under rational expectations and risk neutrality the linear projection of exchange rate change on the forward premium has a unit coefficient. However, empirical estimates of this coefficient are significantly less than one and often negative. We investigate whether replacing rational expectations by discounted least squares (or “perpetual”) learning can explain the result. We calculate the asymp...

Equity Home Bias: Can Information Cost Explain the Puzzle?

Can Equity Volatility Explain the Global Loan Pricing Puzzle?∗

We examine whether equity volatility can explain the difference in syndicated corporate loan spreads paid by U.S. and European borrowers first documented by Carey and Nini (2007). We argue that OLS estimates of the association between equity volatility and loan spreads are biased and inconsistent. We suggest instrumental variables that potentially identify consistent estimates. Our instrumental...

Can Structural Models of Default Explain the Credit-Spread Puzzle?

Structural models of default are widely used to analyze corporate bond spreads, but have generally been unable to explain why risk premiums are as high as they are. This credit spread puzzle can be addressed by taking into account such factors as the variability of the level of risk premiums and the likelihood of default over the course of the economic cycle. Models that incorporate such variat...