Studies in index option pricing provide strong evidence in support of a jump risk premiumand conclude that it plays an important role in explaining both the joint time series behavior of spot and index option prices. At the individual equity level, Dennis and Mayhew (2002) andBakshi, Kapadia and Madan (2003) (BKM, hereafter) uncovered properties of option prices that indicate structural differences between the risk neutral and physical return distributions of equity returns. In a recent study, Duan and Wei (2008) document that this observed structural difference is related to the systematic risk of the underlying asset. Although there is now a growing body of empirical studies on individual equity options, our understanding of the risk factors that are embedded in these individual equity option prices and their economic magnitude is still limited. In particular, the role of the market jump risk premium in individual equity option pricing has not been examined to date.
In his 1997 book Assimilation, American Style, Peter D. Salins argues for the value of immigrants in American life while simultaneously mounting a conservative critique of the types of cultural changes engendered by immigration, including multicultural instruction, institutionalized use of languages other than English, and “anti-Americanism” more generally.
Salins? arguments, as fits his pro-assimilationist position, are predicated on stability. America is a constant value and “immigrants would be welcome as full members of the American family” if they could adapt themselves to the fixed core ideas that define that “family”: “First, they had to accept English as the national language. Second, they were expected to take pride in their national identity and believe in America?s liberal democratic and egalitarian principles.
This paper develops a dynamic model of investment in environmental abatement technology (EAT) and exports with heterogeneous firms. We generally refer to investment in EAT as all actions taken to minimize environmental impacts both in the domestic and export markets. For example, these expenditures include actions taken to reduce waste, certify products which meet foreign environmental standards, improve environmental sustainability practices, and upgrade product characteristics that may a ect the environment both during and after its nal use.
