This paper provides a numerical analysis of an intertemporal equilibrium model of a small open, barter economy that is subject to random shocks affecting endowments, the terms of trade, and the real interest rate. Equilibrium stochastic processes for macroeconomic aggregates are computed and...

We consider situations where the a priori guidance provided by theoretical considerations indicates only that the function linking the endogenous and exogenous variables is monotone and concave (or convex). We present methods to evaluate the adequacy of a parametric functional form to represent...

In this note, we use the production-theory approach to immigration in an open-economy setting to investigate the role of nonresident workers in Swiss aggregate production. Unlike earlier work in this area, exports are explicitly taken into account. Indeed, a statistical test for global...

We examine the estimation problem for shape-restricted functions that are continuous, non-negative, monotone non-decreasing, and strictly concave. A sieve estimator based on bivariate Bernstein polynomials is proposed. This estimator is drawn from a sieve, a set of shape-restricted Bernstein...

Motivated by the economic theory of cost functions, bivariate Bernstein polynomials are considered for approximating shape-restricted functions that are continuous, non-negative, monotone non-decreasing, concave, and homogeneous of degree one. We show the explicit rates of convergence of our...

This paper reports, for the first time, empirical estimates of one of the most ingenious models of trade in intermediate products - the model of Sanyal and Jones. We show how the restrictions implied by the Sanyal and Jones production structure can be imposed and tested with the help of...

The authors examine the small sample properties and forecasting performance of estimators In models using the Box-Cox transformation via a Monte Carlo experiment They develop a simple,estimator for the expected value of the untransformed dependent variable They show that the sign and magnitude...

This note describes how a convex N-input-M -output production possibility frontier can be locally approximated by means of a flexible Nonseparable Nested Constant-Elasticity-of-Substitution/Constant-Elasticity-of-Transformation (NNCES-CET) restricted profit function. This technique yields a...