This paper analyzes and compares the properties of the most commonly applied versions of the Granger causality (GC) test to a new ridge regression GC test (RRGC), in the presence of multicollinearity. The investigation has been carried out using Monte Carlo simulations. A large number of models...

The standard statistical method for analyzing count data is the Poisson regression model, which is usually estimated using maximum likelihood (ML). The ML method is very sensitive to multicollinearity. Therefore, we present a new Poisson ridge regression estimator (PRR) as a remedy to the...

In this paper, we analyze the welfare effects of publicly provided health care in an economy where the consumers have "present-biased" preferences due to quasi-hyperbolic discounting. The analysis is based on a two-type model with asymmetric information between the government and the private...

The effect of Swedish regional investment grants during 1990-1999 on firm performance, in terms of returns on equity and number of employees, were studied using a propensity-score matching-method to control for sample selection. Firms that received grants did not perform better in terms of...

This paper studies how the spouse’s productivity in the labor market affects one’s individual earnings when married. Theoretically, the high productivity of a spouse in a marriage could affect the other spouse’s earnings in two ways: negatively through specialization and division of labor,...

In this paper we have reviewed some existing and proposed some new estimators for estimating the ridge parameter "k" . All in all 19 different estimators have been studied. The investigation has been carried out using Monte Carlo simulations. A large number of different models were investigated...

In this paper we analyze consumers’ revealed values of food symbols indicating nutritious and organic food, as well as consumers’ revealed values for chemical food additives. We do so by estimating a hedonic price function based on a rich data set on breakfast cereal purchases. Our findings...

A real-options approach was used, incorporating uncertainty and irreversibility of investments, to study the number of stores entering the Swedish retail food market during the period 1994-2002. It was found that uncertainty affected the entry-decision. Entry was less frequent in highly...

The aim of this paper is to analyze the impact of the deregulation of the Norwegian pharmaceuticals market in 2001 on costs and availability of pharmaceutical products. Data has been collected from the annual reports of a sample of Norwegian pharmacies before and after the deregulation of the...

The Stern Review, Stern (2007), received a lot of attention upon its release. It also resulted in an intense and interesting debate within climate change economics. One of the central issues has been the question of the appropriate discount rate to use and more generally the proper role of...