We show that labor search frictions are an important determinant of the cross-section of equity returns. In the data, sorting firms by loadings on labor market tightness, the key statistic of search models, generates a spread in future returns of 6% annually. We propose a partial equilibrium labor market model in which heterogeneous firms make optimal employment decisions under labor search fri...

In this paper we test several risk management models for computing expected shortfall for one-period hedge errors of hedged derivatives positions. Contrary to value-at-risk, expected shortfall cannot be tested using the standard binomial test, since we need information of the distribution in the tail. As derivatives positions change characteristics and thereby the size of risk exposures over ti...

Paralleling regulatory developments, we devise value-at-risk and expected shortfall type risk measures for the potential losses arising from using misspecified models when pricing and hedging contingent claims. Essentially, losses from model risk correspond to losses realized on a perfectly hedged position. Model uncertainty is expressed by a set of pricing models, relative to which potential l...

This study aimed at comparing the impact of two types of teacher feedback on Iranian EFL learners’ writing ability and their verb tense consistency in L2 writing. Following the administration of a standardized language proficiency test (Preliminary English Test), sixty-two participants were selected and were randomly assigned to the control (direct-only correction) and experimental (direct meta...