Using recent activity signature function methodology developed in Todorov and Tauchen (2010), we provide empirical evidence that individual stocks from the New York Stock Exchange are adequately represented by a Brownian motion plus medium to large (rare) jumps thus invalidating the pure-jump...

We analyze the effect of stochastic survival of children on fertility decision in a dynastic utility model where saving, so to speak, can only be made through having children, the number of which is an endogenous decision to the household. In our stochastic framework where the rate of population...

We analyze the effect of stochastic survival of children on fertility decision in a dynastic utility model where saving, so to speak, can only be made through having children, the number of which is an endogenous decision to the household. In our stochastic framework where the rate of population...

We show that the use of the real effective exchange rate to test for purchasing power parity, as in Astorga (2012) and other studies, is subject to a problem that biases tests against finding evidence of PPP. The problem is illustrated using Astorga´s data on six Latin American countries.

This study applies the Sequential Panel Selection Method (SPSM) to test the mean reversion properties in the current account balance as percentages of GDP for the ten OECD countries (Australia, Canada, Finland, Germany, Korea, Mexico, Norway, Switzerland, United Kingdom and United States) over...

There are four-parameter income distribution models that have good reputation for goodness-of-fit. In contrast, the existing models with five or more parameters fail to achieve a satisfactory level of goodness-of-fit. We propose a new seven-parameter model that is empirically shown to be...