This article presents a stochastic equilibrium model for environmental markets that allows us to study the characteristic properties of emission permit prices induced by the design of today’s cap-and-trade systems. We characterize emission permits as highly nonlinear contingent claims on economy-wide emissions and reveal their hybrid nature between investment and consumption assets. Our model makes predictions about the dynamics and volatility structure of emission permit prices, the forward price curve, and the implications for option pricing in this market. Empirical evidence from existing emissions markets shows that the model explains the stylized facts of emission permit prices and related derivatives.

We examine the influence of outside directors’ industry experience on segment investment, segment operating performance, and firm valuation for conglomerates. Given board composition is endogenous, we instrument for the presence of industry expert directors using the supply of experienced executives near conglomerate firms’ headquarters. We find that industry expert representation on the board causes increased segment investment. Consistent with experienced directors playing favorites rather than acting as dispassionate advisors, segment profitability (firm value) is lower for segments (firms) with industry expert outside directors. We do not find analogous negative profitability or valuation effects of director experience for single-segment firms.

Leslie Berlin's book Troublemakers is an engaging and insightful people-first exploration of the roots of Silicon Valley, from the late 1960s to the early 1980s. Berlin portrays seven individuals who played important roles at critical junctures in the development of technologies we now take for granted: the Internet; personal, connected computing and communications devices; genetic engineering; software as a service (SAAS); streaming video; massively multiplayer online games; and democratized access to the world's information. They helped lay the foundation for the economic powerhouse called Silicon Valley.

This article revisits and reassesses the evolution of Italian capitalism during the so called “economic miracle” (1950–1973). Using original sources, it analyzes how the average small, private firm, representing the vast majority of Italian businesses at the time, struggled to fully develop, grow, and modernize. The paper identifies the main source of the problem in a set of inefficient (or poorly-enforced) laws and regulations that allowed firms to remain competitive, and business owners to extract resources out of them, using a wide variety of borderline strategies. This article also claims that accountants (commercialisti) had a key role in implementing these strategies.

Department stores are often seen as transformative of both retail and wider social practices. This article offers a comparative analysis of department stores in early twentieth-century Britain and Japan to assess the extent to which there were universal qualities defining the operation, practices, and experience of department stores and to explore the ways in which they might be seen as transforming retailing in the two countries. Despite similarities in their origin, organization, and service to customers, we highlight the greater diversity of British department stores and their incremental development. Japanese stores were a far more powerful force for change because they formed part of a concerted and conscious program of modernization.