We provide an accessible introduction to graph-theoretic methods for causal analysis. Building on the work of Swanson and Granger ("Journal of the American Statistical Association", Vol. 92, pp. 357-367, 1997), and generalizing to a larger class of models, we show how to apply graph-theoretic...

Two types of unit root tests which accommodate a structural level shift at a known point in time are extended to the situation where the break date is unknown. It is shown that for any estimator for the break date the tests have the same asymptotic distribution as the corresponding tests under...

We test the unitary versus collective model of the household using specially designed data from Bangladesh, Ethiopia, Indonesia, and South Africa. Human capital and individual assets at the time of marriage are used as proxy measures for bargaining power. In all four countries, we reject the...

Two different approaches intend to resolve the 'puzzling' slow convergence to purchasing power parity (PPP) reported in the literature [see Rogoff (1996), "Journal of Economic Literature", Vol. 34.] On the one hand, there are models that consider a non-linear adjustment of real exchange rate to...

The issue of possible non-linearities in the relationship between log wages and schooling has received a good deal of attention in the literature. This paper uses data from a recent, high quality household survey for the Philippines, the 1998 Annual Poverty Indicator Survey (APIS), to test the...

Existing exogeneity conditions of literature are only sufficient and imply 'overly strong' constraints on long-run parameters. This paper presents some new results on exogeneity in vector error correction models. A key concept of the analysis is the 'purely exogenous long-run path', i.e. a...

This paper uncovers an increasing proportion of quoted UK companies omitting cash dividends. Using a large panel of quoted UK firms, we estimate panel data probit models for the incidence of dividend omissions and cuts as functions of financial characteristics including cash flow, leverage,...

Ploberger and Phillips ("Econometrica", Vol. 71, pp. 627-673, 2003) proved a result that provides a bound on how close a fitted empirical model can get to the true model when the model is represented by a parameterized probability measure on a finite dimensional parameter space. The present note...

In this paper, we use a unique matched worker-workplace data set to estimate the effect on own earnings of co-workers' education. Our results, using the 1998 GB Workplace Employee Relations Survey, show significant effects. An independent, significantly positive effect from average workplace...