In this paper, we propose a simple approach to testing and modelling nonlinear predictability of stock returns using Hermite Functions. The proposed test suggests that there exists a kind of nonlinear predictability for the dividend yield. Furthermore, the out-of-sample evaluation results...

We calculate the magnitude of the fiscal spending multiplier in linearised and nonlinear solutions of a New Keynesian model at the zero lower bound. Importantly, the model is amended with real rigidities to simultaneously account for the macroeconomic evidence of a low Phillips curve slope and...

Aims: Dental services differ from other health services in several dimensions. One important difference is that a substantial share of costs of dental services-especially costs beyond routine dental treatment-is paid directly by the patient out-of-pocket. Settings and design: This study analyses...

In the period before the crisis, Montenegro experienced a rapid credit growth, which coincided with the privatization of several banks and was followed by the entry of foreign banking groups, amplifying the banks’ lending process and increasing competition in this sector. This paper focuses on...

The analysis of highly structured data requires models with unobserved components (random effects) able to adequately account for the patterns of variances and correlations. The specification of the unobserved components is a key and challenging task. In this paper, we first review the...

Contemporary intellectual property theory concentrates on the cumulative and incremental nature of innovation and creation. A prevalent image depicts authors and inventors as "standing on the shoulders of giants". This Article focuses on a different type of innovation that has been largely...

Mortality risk varies geographically, especially in the Asia-Pacific (APAC) region, where economic development is quite diverse. We present a newly-collected dataset on aggregate population mortality from eleven countries in APAC, which we rank based on their economic development. Using lead-lag...

This paper considers a general model specification test for nonlinear multivariate cointegrating regressions where the regressor consists of a univariate integrated time series and a vector of stationary time series. The regressors and the errors are generated from the same innovations, so that...