This paper provides two specification tests for the system of spatial autoregressive model of order m . We derive the theoretical limit distributions and show in a detailed Monte Carlo simulation study that the tests result in reasonable sized testing procedures with large power. In the...

This paper provides two specification tests for the system of spatial autoregressive model of order m . We derive the theoretical limit distributions and show in a detailed Monte Carlo simulation study that the tests result in reasonable sized testing procedures with large power. In the...

Existing dynamic capital structure models are based on single triggers determining bankruptcy, mainly over-indebtedness or illiquidity. The latter one tends to underestimate optimal capital structures by ignoring capital providers' flexibility to inject fresh money. The former one leans towards...

For a sample of Exponentially distributed durations we aim at point estimation and a confidence interval for its parameter. A duration is only observed if it has ended within a certain time interval, determined by a Uniform distribution. Hence, the data is a truncated empirical process that we...