Under some regularity conditions, the paper provides an alternative proof for the revised moment conditions proposed by Hong and Tamer (2003) in the nonlinear least squares regression model, when the covariates are measured with Laplace error. The asymptotic normality of the revised moment...

This paper assesses the effect of constrained trade finance on trade flows in countries undergoing financial and balance of payments crises. Most of the countries that had a major crisis had a significant trade contraction, while trade-related finance declined sharply. However, trade may also be...

We show the importance of a dynamic aggregation bias in accounting for the PPP puzzle. We prove that established time-series and panel methods substantially exaggerate the persistence of real exchange rates because of heterogeneity in the dynamics of disaggregated relative prices. When...