Price Level Variations as Predictors of Flexible Exchange Rates

The aim of this study is to investigate the relationship between relative price levels and exchange rates with the view of establishing the validity of the purchasing power parity theory. Included in the paper is a discussion of the interpretation of such analyses in an efficient market context.© 1977 JIBS. Journal of International Business Studies (1977) 8, 71–82

Empirical Properties of Foreign Exchange Rates

This paper investigates the behavior of foreign exchange rates. Empirical tests indicate that the distribution of the underlying stochastic process for foreign exchange rate changes was stable paretion during fixed rate periods while a Student model provides a relatively better description on floating rates. These findings point to an important direction for further work on the appropriate distribution for foreign exchange rates and estimates of parameters.© 1978 JIBS. Journal of International Business Studies (1978)9, 69–79

Mortgage Default Risks and the 1971 San Fernando Earthquake

The paper is based on a study of mortgage default risks associated with natural disasters. These risks are faced by holders of mortgages when forced by default to acquire damaged properties. A sample of residential mortgage properties damaged in the 1971 San Fernando, California earthquake is studied. Some of the mortgagors defaulted while others did not. The paper identifies and analyzes those variables associated with default using discriminant and probit regression analysis. The study concentrates on earthquake exposures in California, but has implications for all major disasters. Copyright American Real Estate and Urban Economics Association.