This paper considers structural models when both I(1) and I(0) variables are present. It is necessary to extend the traditional classification of shocks as permanent and transitory, and we do this by introducing a mixed shock. The extra shocks coming from introducing I(0) variables into a system...

Remittances are a transfer from mostly developed countries to less developed countries by the workers that have migrated for work. For some countries the magnitude is huge. In the western hemisphere the remittances flow mostly from the USA to Latin countries. Theoretically, the flow of...

Structural economic models allow one to analyze counterfactuals when economic systems change and to evaluate the well-being of economic agents. A key element in such analysis is the ability to identify the primitive functions and distributions of the economic models that are employed to describe...

In this paper, we consider a simultaneous equations model under a functional coefficient representation for the structural equation of interest and adopt the local-to-zero assumptions as in Staiger and Stock (1997) and Hahn and Kuersteiner (2002) on the coefficients of the instruments in the...

We suggest using a class of semiparametric dynamic panel data models to capture individual variations in panel data. The model assumes linearity in some continu ous/discrete variables which can be exogenous/endogenous, and allows for nonlinearity in other weakly exogenous variables. We propose a...

This paper gives a selective overview on the functional coefficient models with their particular applications in economics and finance. Functional coefficient models are very useful analytic tools to explore complex dynamic structures and evolutions for functional data in various areas,...

The literature discusses several methods to control for self-selection effects but provides little guidance on which method to use in a setting with a limited number of variables. The authors theoretically compare and empirically assess the performance of different matching methods and...

During the global financial crisis, European banks sharply contracted foreign claims on recipient economies. This paper examines the impact of that deleveraging on credit supply in recipient economies, with a particular focus on Asia. Identification is achieved by exploiting heterogeneity in the...