Motivated by a desire to enhance market liquidity, exchanges around the world have recently shown increasing interest in so-called `maker-taker' fee structures. However, little is currently known about the e ectiveness of ...

From 2007, New Zealand firms must report the cost of granting employee stock options (ESOs). Market-based option pricing models assume that option holders are unconstrained in their portfolio choices and thus are indifferent ...

In an influential paper, Hall and Liebman (QJE, 1998) ask if senior corporate executives are really paid like bureaucrats, and conclude that they are not. In this paper, we ask if senior public service bureaucrats are ...

In most countries, academic pay is independent of discipline, thus ignoring differences in labor market opportunities. Using some unique data from a comprehensive research assessment exercise undertaken in one such country ...

In applying the Capital Asset Pricing Model (CAPM) to cost of capital calculations, practitioners treat the market risk premium as a free parameter to be estimated from data. However, this process ignores equilibrium in ...

When interest rates are uncertain, the net-present-value threshold required to justify an irreversible investment is increasing in the length of a project's payback period. Therefore, slow-payback projects should face a ...