This paper illustrates how a third statistic from asset pricing models, the R-squared statistic, may have information that can help in portfolio construction. Using a traditional CAPM model in comparison to an 18-factor Arbitrage Pricing Style Model, a portfolio separation test is conducted. Portfolio returns and risk metrics are compared using…

The extent to which community colleges in 10 Midwest states relied on 12 current funds revenue sources between 1990 and 2000 is presented in this study. Four models of funding were identified and evaluated. All models generated revenue in excess of the change in the Higher Education Price Index (HEPI), a measure of inflation over the period…

Hedonic models of the price of college to construct quality-adjusted net price indexes for U.S. four-year colleges were estimated. A 22 percent decline in the estimated price index is reported by adjusting for financial aid, while quality adjusting results lead to a smaller decline, for academic years 1990-91 to 1994-95.

Significant differences in the cost of living exist among different parts of the country and among different rural and urban counties within the same state. This paper develops a method for estimating current geographical differences in the cost of living index for all states for 1981-90. These estimates, based on Bureau of Labor Statistics data,…

Observes that, before 1973, determining a valuation formula for option prices was an elusive goal of financial economics. Discusses Louis Bachelier's early twentieth-century work on the problem. Notes that Bachelier derived a normal distribution for stock price movements by modeling price changes in specific way. Reviews Bachelier's option pricing…

Strategic pricing is an important and exciting topic in industrial organization and the economics of strategy. A wide range of texts use what has become a standard version of the Milgrom and Roberts (1982a) limit-pricing model to convey the essential ideas of strategic pricing under incomplete information. In addition to providing a formal, but…

The desire to create an effective cost of education index (CEI) arises from a desire to achieve greater equity in state and federal school funding mechanisms. Before such a measure is useful, however, much more thought must be given to the specification of factors differentially affecting demand and supply. Consensus regarding classification of…

An interstate cost-of-living index from SMSA-level market basket data is generated in this research. Models are developed for each of the four regions--Northwest, North Central, South, and West--to explain differences in the cost of living among more than 180 SMSAs. Weighted regression coefficients were combined with comparable state-level data to…