They essentially ask this question: Is it possible for the ex post return on one risky asset to exceed the ex post return on a different risky asset?
Although choosing a plan outside of one's state of residence foregoes any state tax advantage, it dominates a similar portfolio held outside the plan for any positive federal tax rate, so long as the nominal ex post return is positive.
1] is the ex post return
from holding full-term a 1-year loan.
First, the ex ante return to starting college for male high school graduates is higher than the ex post return to the first year of college because starting college provides the option to continue.
Dunn, "The Effects of Family Characteristics on the Return to Education, "Review of Economics and Statistics (forthcoming) studies the effects of parental education on the ex post return to a year of school.
Second, for some demographic groups the ex post returns to education are associated largely with completing high school or completing college.
An efficient student lending scheme should yield the same ex ante expected return from all borrowers even if ex post returns
differ due to unpredictable labor market outcomes.
For parameterizations A and B, in which, respectively, there are no works with positive ex post investment returns and the works with positive ex post investment returns have low ex post returns, finitely lived copyright protection is optimal.
We know from earlier that optimal copyright length tends to be long, possibly infinite, when relative ex post returns are high.
The authors find that the combination of a staggered board and a poison pill nearly doubles the odds that a target firm will fend off a hostile bid, reducing target shareholders' ex post returns by eight to ten percent in the nine months following the appearance of a hostile bidder.
The empirical findings presented by Bebchuk, Coates, and Subramanian do a nice job of undermining the argument that ATDs increase target shareholders' ex post returns by giving target boards bargaining leverage to demand higher premiums from hostile bidders.
Because the predicted returns on the stock market are subject to larger error when fewer years of ex post returns
on the stock market exist, a generalized least squares estimator is used that weights each observation by the number of years over which market returns are compounded [Johnston, 1984].