We model consumption and dividend growth rates as containing (i) a small long-run predictable component and (ii) fluctuating economic uncertainty (consumption volatility). These dynamics, for which we provide empirical support, in conjunction with Epstein and Zin’s (1989) preferences, can explain

not support a mean-reverting model of asset prices.

We survey 392 CFOs about the cost of capital, capital budgeting, and capital structure. Large firms rely heavily on present value techniques and the capital asset pricing model, while small firms are relatively likely to use the payback criterion. We find that a surprising number of firms use

's than firms that keep their number of segment constant. Our evidence is consistent with the view that firms seek growth through diversification when they have exhausted internal growth opportunities. We fail to find evidence supportive of the view that diversification provides firms with a valuable

digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. The Econometric Society is collaborating with JSTOR to digitize, preserve and extend access to Econometrica. A

-evaluations, exaggerated perceptions of control or mastery, and unrealistic optimism-can serve a wide variety of cognitive, affective, and social functions. We also attempt to resolve the following paraPreparation of this article was supported by National Science Foundation Grant BNS 83-08524, National Cancer Institute

With the launch of TacSat-2, the Operationally Responsive Space (ORS) community had its first on-orbit asset and opportunity to prove or disprove the premise that small, inexpensive, and quickly constructed spacecraft could perform useful operational missions when needed and for as long as needed

for traffic incident management operations and long-term asset management of the equipment used for IM. The proposed tool Traffic Incident Management System (TIMS) is developed using Visual Basic (VB) programming language and GeoMedia Pro 1, GIS software package. A major innovation of this application

This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference therein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed therein do not necessarily state or

of securities to assets. Moreover, this pattern is largely attributable to the smaller banks, those in the bottom 95 percent of the size distribution. Our results support the existence of a “bank lending channel” of monetary transmission, though they do not allow us to make precise statements about its