We provide a new asymptotic analysis of model selection procedure that compares likelihoods of two candidate diffusion models. Our asymptotic analysis relies on two dimensional asymptotic expansions with shrinking sampling interval Δ and increasing sampling span T, and clarifies the different...

The hypothesis that the banking system consists of firms that use the same production technology is tested and rejected in this study. Six groupings of the population of commercial banks are identified using cluster analysis. The banks are grouped to reflect similar production technologies...