The Positron Puzzle

The Equity Premium Puzzle and the Risk-free Rate Puzzle

This paper studies the implications for general equilibnum asset pricing of a class of Kreps-Porteus nonexpected utility preferences characterized by a constant intertemporal elasticity of substitution and a constant, but unrelated, coefficient of relative risk aversion. It is shown that relaxing the parametric restriction on tastes imposed by the time-additive expected utility specification do...

Iranian Cinema: The Puzzle of Westernization and Self-Orientalism

Addressing the IGARCH puzzle

We address the IGARCH puzzle, by which we understand the fact that a GARCH(1,1) model fitted to virtually any financial dataset exhibit the property thatˆα + ˆ β is close to one. We do this by proving that if data is generated by a stochastic volatility model but fitted to a GARCH(1,1) model one would get thatˆα + ˆ β tends to one in probability as the sampling frequency is increased. We also d...

The Quantum Computer Puzzle

Q uantum computers are hypothetical devices, based on quantum physics, which would enable us to perform certain computations hundreds of orders ofmagnitude faster than digital computers. This feature is coined “quantum supremacy”, and one aspect or another of such quantum computational supremacy might be seen by experiments in the near future: by implementing quantum error-correction or by syst...

The Puzzle of Friendship

Cooperative relationships, which involve the exchange of altruistic behaviors that are costly to the actor and beneficial to the recipient, are thought to be the product of kin selection or reciprocal altruism. Humans form close, enduring, cooperative relationships with nonrelatives. In these relationships, which we call friendships, both emotional and material support are exchanged. If these r...