We propose a simple model of trooper behavior to design empirical tests for whether troopers of different races are monolithic in their search behavior, and whether they exhibit relative racial prejudice in motor vehicle searches. Our test of relative racial prejudice provides a partial solution...

We propose novel conditional autoregressive Wishart (CAW) models for high-dimensional realized covariance matrices of asset returns. We incorporate measurement errors into realized variance dynamics of Realized Dynamic Conditional Correlation (Re-DCC) model. It is well known that the measurement...

We propose a general method of moments technique to identify measurement error in self-reported and transcript-reported schooling using differences in wages, test scores, and other covariates to discern the relative verity of each measure. We also explore the implications of such reporting...

The neoclassical theory of production supports the identity i.e. the Output-Labor ratio equals wage-labor ratio plus profit labor ratio. Here profit is treated as capital. The variables wage to labor ratio and capital to labor ratio are considered real variables in the neoclassical theory; so...

We introduce a structural vector autoregressive (SVAR) model with each of the mutually independent errors following a skewed generalized t-distribution that is more flexible than a Student's t-distribution typically considered. Hence, the effect of potential distributional misspecification is...

This paper studies how entrepreneurs form new beliefs after making forecast errors. I use survey-based micro data that are representative of the population of French entrepreneurs, and I find that 21\% of entrepreneurs make optimistic errors, while 36\% make pessimistic errors, suggesting that a...

Who would want to be biased? Bias seems obviously, inherently bad. An example of a biased estimator is one that excludes explanatory variables, such as a model of school dropout rates that excludes science test scores. Another example is a model that restricts the allowed parameter values, such...

This paper aims at clarifying, with the help of a simple formal model and numerical examples, several aspects of the relationship between international investment position (IIP) and balance of payments (BOP) statistics. Exact and approximated relations are compared to analyze the estimation...

In surveys, non-sampling errors, due to their complex nature, are more challenging to quantify compared to sampling errors. Avoiding the release of these errors, however, results in biased survey estimates. In our previous paper, we devised the best interviewer allocation technique by using a...