This study proposes a semiparametric estimate and a test for base-independence equivalence scale. Our semiparametric approach is based on nondensity weighted loss function in contrast to Pendakur's (1999) density weighted loss function. Simulation results indicate that our specification tends to...

This study introduces Johnson's SU-normal distribution which can accommodate the flexibility of true error distribution to obtain consistent estimates in an endogenous switching regression model. Simulation results indicate that the SU-normal model outperforms the normal model for the...

This study examines causal linkages between US and Eurodollar interest rates during 1983-2002. Recursive cointegration analysis shows that a stable cointegration relationship between the two interest rates emerges only since the early 1990s, when the Fed used federal funds rate targeting and...