This paper develops a dynamic framework to analyze the political sustainability of economic reforms in developing countries. First, we demonstrate that economic reforms that are proceeding successfully may run into a political impasse, with the reform's initial success having a negative impact...

This paper examines nonsequential search when jobs vary with respect to nonpecuniary characteristics. In the presence of frictions in the labor market, the equilibrium job distribution need not show evidence of compensating wage differentials. The model also generates several pervasive features...

Semiparametric estimation of a bivariate fractionally cointegrated system is considered. We propose a two-step procedure that accommodates both (asymptotically) stationary (δ1/2) and nonstationary (δ≥1/2) stochastic trend and/or equilibrium error. A tapered version of the local Whittle...

type="main" <p>In this paper we propose a modified quasi-likelihood ratio test of the null hypothesis of one regime against the alternative of two regimes in Markov regime-switching models. The asymptotic distribution of the proposed test statistic is a simple function of Gaussian random variables,...</p>

type="main" xml:id="rssb12022-abs-0001" <title type="main">Summary</title> <p>We analyse the identifiability of the number of components in k-variate, M-component finite mixture models in which each component distribution has independent marginals, including models in latent class analysis. Without making parametric...</p>