This paper makes use of the Bayesian approach to test for mean reversion in the Swedish stock market via Gibbs sampling. We use a sample of eighty years of monthly Swedish stock market returns including dividends from December 1918 to December 1998. We test for mean reversion in the short-run...

This paper develops a method suggested by the theory to estimate the structural parameters of a two-sided matching model in the context of a marriage market. A discrete marriage index is proposed to rank individuals’ measured attributes, and a matching algorithm is proposed to solve for the...

We consider the problem of formulating and estimating dynamic regression models with variables observed at different frequencies. The strategy adopted is to define the dynamics of the model in terms of the highest available frequency, and to apply certain lag polynomials to transform the...

The role of competition in defense procurement has long been controversial due to the extraordinary demand for technological advance, the relatively small production quantities involved and the importance of learning by doing. Since the early 1980s, Defense Department policy has encouraged the...

We reconsider two standard results of deterrence theory. The first states that there is no need for jail terms until monetary fines are not exhausted. The second says that there is no marginal deterrence without joint production in law enforcement. <br> In a framework with asymmetric information...

As is well-known, a heteroskedasticity and autocorrelation consistent covariance matrix is proportional to a spectral density matrix at frequency zero and can be consistently estimated by such popular kernel methods as those of Andrews-Newey-West. In practice, it is difficult to estimate the...

This paper develops a model of the structure of protection across industries. We model five types of agents: policy makers, producers, importers, workers, and consumers. The model implies that protection increases with workforce size and decreases with lobbying costs. The effects of both output...

No abstract.

In this paper, I develop an estimator for a semi-parametric logit model based on a kernel-weighted average of pairwise conditional logit terms. Then I demonstrate consistency, asymptotic normality, and consistent asymptotic covariance matrix estimation for this estimator using results for...