Civil wars dramatically reduce income. Peace might therefore be expected to generate a dividend which both the government and the private sector can spend. Paradoxically, those civil wars which are prolonged and therefore do most damage create only small instant peace dividends. Income has fallen because capital has been lost and so cannot recover until capital has been reaccumulated. However, ...

Recent studies on the so-called double dividend hypothesis find that environmental tax swaps exacerbate the costs of the tax system and therefore do not produce a double dividend. We extend these models by incorporating a fixed-factor in the production of the polluting good and, therefore, allowing Ricardian rents to be generated in the economy. In this setting, an environmental tax reform with...

It is generally conceded that dividend pricing models are poor predictors of asset prices. This finding is sometimes attributed to excess volatility or to a dividend process manipulated by firm managers. In this paper, we present rather powerful panel tests of the dividend pricing relation using a unique data set in which dividends are set by market forces independent of managers’ preferences. ...

Existing empirical research investigating the size of the equity premium has largely consisted of a series of innovations around a common theme: producing a better estimate of the equity premium by using better data or a better estimation technique. The equity premium estimate that emerges from most of this work matches one moment of the data alone: the mean difference between an estimate of th...

Based on different objectives, various insurance risk models with adaptive polices have been proposed, such as dividend model, tax model, model with credibility premium, and so on. In this report, we will only focus the study on dividend strategies. Here are some reasons why the dividend strategy is of interest. For an insurance company, ruin occurs when a claim size is greater than its reserve...

We present three models of stock price with time-dependent interest rate, dividend yield, and volatility, respectively, that allow for explicit forms the optimal exercise boundary finite maturity American put option. The satisfies nonlinear integral equation Volterra type. choose parameters model so can be solved in closed form. also define contracts type strike support boundary.

We derive representations for the stock price drift and volatility in the equilibrium of agents with arbitrary, heterogeneous utility functions and with the aggregate dividend following an arbitrary Markov diffusion. We introduce a new, intrinsic characteristic of the aggregate dividend process that we call the ”rate of discounting volatility” and show that, in equilibrium, the size of market p...

This paper describes a new dataset of annual time series relating to the US non...nancial corporate sector: its market value, and the major underlying stocks and ‡ows that are valued by ...nancial markets. The data cover the entire twentieth century, and thus ...ll a signi...cant gap in the documentation of ...nancial and real economy linkages. Previously available data cover either shorter per...

Empirical studies have suggested that stock returns can be predicted by financial variables such as the dividend-price ratio. However, these studies typically ignore the high persistence of predictor variables, which can make first-order asymptotics a poor approximation in finite samples. Using a more accurate asymptotic approximation, we propose two methods to deal with the persistence problem...

Gordon and Shapiro (1956 Management Sci. 10 102–10) first equated the price of a share with the present value of future dividends and derived the well known relationship. Since then, there have been many improvements on the theory. For example, Thompson (1985 Managerial Decis. Economics 6 132–40, 1987 Managerial Decis. Economics 8 321–32) combined the ‘dividend yield plus growth’ method with Bo...