We consider a misconception common among students of statistics involving "adjusted" and "unadjusted" sums-of-squares. While the presence of misconception has been noted before (e.g. Hamilton (1986)), we argue that it may be related to the language we use in describing the meaning of...

In both corporate finance and asset pricing empirical work, researchers are often confronted with panel data. In these data sets the residuals may be correlated across firms and across time, and OLS standard errors can be biased. Historically, the two literatures have used different solutions to...

We study empirically the macroeconomic effects of an explicit de jure quantitative goal for monetary policy. Quantitative goals take three forms: exchange rates, money growth rates, and inflation targets. We analyze the effects on inflation of both having a quantitative target, and of hitting a...