A simple optimal garnishing rule to discourage strategic bankruptcy is derived.

This paper develops an asymptotic theory for residual based tests for cointegration. These tests involve procedures that are designed to detect the presence of a unit root in the residuals of (cointegrating) regressions among the levels of economic time series. Attention is given to the...

It has been nearly twenty years since Poole (1970) wrote his classic article on the optimal choice of monetary policy instruments in a stochastic IS-LM model. Poole assumed that the monetary authority (henceforth called the Fed) can control the interest rate or the money supply exactly. These...

This paper develops a semiparametric method for estimating the nonrandom part V(.) of a random utility function U(v, omega) - V(v) + e(omega) from data on discrete choice behavior. Here v and omega are, respectively, vectors of observable and unobservable attributes of an alternative, and...

This paper extends the classical Chow (1960) test for structural change in linear regression models to a wide variety of nonlinear models, estimated by a variety of different procedures. Wald, Lagrange multiplier-like, and likelihood ratio-like test statistics are introduced. The results allow...

This paper consolidates and interprets the literature on the term structure, as it stands today. Definitions of rates of return, forward rates and holding returns for all time intervals are treated here in a uniform manner and their interrelations, exact or approximate, delineated. The concept...

The effects of the changing U.S. age distribution on various macroeconomic equations are examined in this paper. The equations include consumption, money demand, housing investment, and labor force participation equations. Seven groups are analyzed: 16-19, 20-24, 30-39, 40-54, 55-64, and 65+....

The information contained in the forecasts from two econometric models can be compared by regressing the actual change in the variable forecasted on the two forecasts of the change. We do such comparisons in this paper, where the forecasts are based only on information through the period prior...

This paper studies a class of models where full identification is not necessarily assumed. We term such models partially identified. It is argued that partially identified systems are of practical importance since empirical investigators frequently proceed under conditions that are best...

Under general conditions the sample covariance matrix of a vector martingale and its differences converges weakly to the matrix stochastic integral from zero to one of BdB; where B is vector Brownian motion. For strictly stationary and ergodic sequences, rather than martingale differences, a...