This paper demonstrates how Goal Programming/Constrained Regression can be used for cross-checking results from standard econometric models as well as a stand alone methodology in empirical production analysis. For illustration, we re-examine Berndt and Wood's (BW) seminal study of the U.S....

The performances of alternative two-stage estimators for the endogenous switching regression model with discrete dependent variables are compared, with regard to their usefulness as starting values for maximum likelihood estimation. This is especially important in the presence of large...

This study addresses some modeling questions related to the possibility of structural change in models with non-stationary variables. Focusing on cointegration issues, some methodological aspects ere discussed, attempting to integrate coherently the several steps of the modelling strategy. These...

We introduce a goodness of fit process for quantile regression analogous to the conventional R2 statistic of least squares regression. Several related inference processes designed to test composite hypothese about the combined effect of several covariates over an entire range of conditional...

If an economic relationship is superimposed by a linear time trend, the regression without detrending is misspecified. The estimators of such a regression do not converge to the true parameter values. First, the asymptotic limit arising from such misspecified regressions is characterized....

The work of three leading figures in the early history of econometrics is used to motivate some recent developments in the theory and application of quantile regression. We stress not only the robustness advantages of this form of semiparametric statistical method, but also the opportunity to...

This paper introduces a representation of an integrated vector time series in which the coefficient of multiple correlation computed from the long-run covariance matrix of the innovation sequences is a primitive parameter of the model. Based on this representation, a notion of near cointegration...

A spurious regression occurs when a pair of independent series, but with strong temporal properties, are found apparently to be related according to standard inference in an OLS regression. Although this is well known to occur with pairs of independent unit root processes, this paper finds...

This chapter reviews the literature that tries to explain the disparity and variation of GDP per worker and GDP per capita across countries and across time. There are many potential explanations for the different patterns of development across countries, including differences in luck, raw...