In a recent article (1984a) Phillips showed that the distribution of the limited information maximum likelihood (LIML) estimator of the coefficients of the endogenous variables in a single structural equation is multivariate Cauchy in the leading (totally unidentified) case. The purpose of the...

This note presents conditions under which a quadratic form based on a g-inverted weighting matrix converges to a chi-square distribution as the sample size goes to infinity. Subject to fairly weak underlying conditions, a necessary and sufficient condition is given for this result. The result is...

In this paper we propose a pseudo-Nash equilibrium for N-person games in which very simply we allow play in the last period to be arbitrary, but otherwise it must conform to the (perfect) Nash optimality criterion.

This paper extends the Pearson chi-square testing method to non-dynamic parametric econometric models, in particular, to models with covariates. The paper establishes the asymptotic distribution of the test statistic under the null and local alternatives, when the test statistic is based on...

The objective of this paper is to study international lending and borrowing in general equilibrium framework in which countries are subject to stochastic productivity fluctuations. The role of time preference, borrowing limits, and lump sum taxation are rigorously analyzed, yielding results...

This study is an effort to give a simple measure of the local size of the equilibrium set of OLG economies in which there may be more than one good and more than one consumer per period, and in which the generations may differ across time.

Overlapping generations models with or without production or a portfolio demand for money display a fundamental indeterminacy. Expectations matter; and they are not, in the short run, constrained by the hypotheses of agent optimization, rational expectations, and market clearing. No short run...

This paper is devoted to a discussion of several simple experimental games used in a series of lectures on game theory. The prime purpose of these games was to raise questions and illustrate problems in the construction of game theoretical models in the social sciences. The students were asked...

One of the main findings of the principal-agent literature has been that incentive schemes should be sensitive to all information that bears on the agent's actions. As a manifestation of this principle, incentive schemes tend to take quite complex (non-linear) forms. In contrast, real world...

This paper discusses two central questions: Why do auction institutions continue to be so popular after thousands of years? and What accounts for particular details, like the popularity of sealed bid and ascending-bid auctions?