Measures of distance between income distributions

This paper presents a class of measures of distance between two income distributions. The measures are based on distribution functions and evaluate the degree of inequality of income between two populations. This class of measures is derived by an axiomatic approach and it is completely characterized by the properties normally associated with a distance function and a set of axioms.     

Foreign production and international hedging in a multinational firm

This paper presents a model of a risk-averse multinational firm under exchange rate risk. The firm, which owns and controls assets in two countries, is engaged in foreign production, sales, and foreign currency forward contracting. The implications of the existence of forward markets in global market decisions are discussed. It is shown that a separation theorem holds. The optimal hedging behavior is also discussed.