Many empirical exercises estimating demand functions are concerned with dynamic effects of price and income changes over time. Researchers typically interested in getting estimates both short-run (SR) long-run (LR) elasticities, along their standard errors. This study aimed to contribute estimations elasticities world phosphate fertilisers. It answered the research question “How fertilisers is ...

Uncertainty appears to have both a short-run and a long-run component, which we measure using firm and macro implied volatility data from 30 days to 10 years duration. Examining a panel of over 4,000 firms from 1996 to 2013 we find that investment is significantly more sensitive to long-run uncertainty, while employment responds equally to shortand long-run uncertainty. We build a model to inve...

A central challenge in asset pricing is the weak connection between stock returns and observable economic fundamentals. We provide evidence that this connection is stronger than previously thought. We use a modified version of the Bry-Boschan algorithm to identify long-run swings in the stock market. We call these swings long-run bull and bear episodes. We find that there is a high correlation ...

We use Bayesian statistical methods to compare the habit persistence asset pricing model of Campbell and Cochrane, the long run risks model of Bansal and Yaron, and the prospect theory model of Barberis, Huang, and Santos. We undertake two types of comparisons, relative and absolute, over two sample periods, 1930–2008 and 1950–2008, using two series, univariate U.S. stock returns and bivariate ...

This Review presents basic facts regarding the long-run evolution of income and wealth inequality in Europe and the United States. Income and wealth inequality was very high a century ago, particularly in Europe, but dropped dramatically in the first half of the 20th century. Income inequality has surged back in the United States since the 1970s so that the United States is much more unequal th...

The failure of uncovered interest rate parity to explain short-term interest rate movements is well-documented. We show that short-term changes in long-term interest rates do help explain short-term exchange-rate movements. The relationship gets stronger over our sample period, as the liquidity of the exchange rate market increased. We also show that controlling for time-varying exchange-rate r...