Liquidity and interest rates

This paper analyzes a series of models in which money is required for asset transactions as well as for transactions in goods. In these models, government open-market operations induce liquidity effects that lead to interest rate behavior quite different from the behavior one would predict on the basis of Fisherian fundamentals. The paper characterizes these effects under various assumptions about the nature of securities traded and the behavior of shocks.     

The forecast quality of CBOE implied volatility indexes

We examine the forecast quality of Chicago Board Options Exchange (CBOE) implied volatility indexes based on the Nasdaq 100 and Standard and Poor's 100 and 500 stock indexes. We find that the forecast quality of CBOE implied volatilities for the S&P 100 (VXO) and S&P 500 (VIX) has improved since 1995. Implied volatilities for the Nasdaq 100 (VXN) appear to provide even higher quality forecasts of future volatility. We further find that attenuation biases induced by the econometric problem of errors in variables appear to have largely disappeared from CBOE volatility index data since 1995. © 2005 Wiley Periodicals, Inc. Jrl Fut Mark 25:339–373, 2005     

Developing competitive technical intelligence in Indonesia

In Indonesia, political concern promotes the development of autonomy in provinces and in certain academic institutions. This paper relates that with the commencing of AFTA in 2003, there is a strong need for competitive intelligence (CI) and technology watch (TW) in Indonesian industries. The model developed takes its roots within Indonesian constraints and leads to a general guideline to introduce CI in industries and institutions in most developing countries.     

The Public-Choice Approach to Dismantling Big Government

Public-choice analysis of the growth of government suggests that the size of the state could be reduced in the same way thai it has swollen: political coalitions on specific policies to overcome other vested interests. Fred L. Smith Jr of the Competitive Enterprise Institute in Washington, describes irs work to illustrate how it implements the ideas produced by academic orientated institutes.