We provide a methodology to disentangle the long-run relation between variables from their own dynamics. Macroeconomic and aggregate financial series have a high degree of inertia. If this persistence is not properly accounted for, spurious correlations will give rise to paradoxes. Our procedure...

Previous studies on gender wage discrimination have relied on OLS when estimating the wage equations. However, there exists a number of recent studies, devoted to estimating the return to education, that have shown that OLS may produce biased estimates for a number of reasons. Consequently, if...

In this paper, we conduct a simulation analysis of the Fama and MacBeth (1973) two-pass procedure, as well as maximum likelihood (ML) and generalized method of moments estimators of cross-sectional expected return models. We also provide some new analytical results on computational issues, the...

This study examines, among others, the effect of terrorism, political violence, corrup- tion, and religious tension on FDI inflows to the banking, construction, manufactur- ing, oil and gas, and telecommunication sectors in Nigeria. Thus, empirical models were estimated using the fully modified...

The paper investigated the nexus between Ghana's single spine pay policy and unemployment. An exploratory sequential mixed design method was employed to collect data from 413 business owners and managers, which comprised manufacturing companies, service industries, wholesalers as well as small...

We study merchant energy production modeled as a compound switching and timing option. The resulting Markov decision process is intractable. Least squares Monte Carlo combined with information relaxation and duality is a state-of-the-art reinforcement learning methodology to obtain operating...