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When tax shares can be included in political platforms, there will be a bias toward more government spending. This bias is the result of the fact that demand curves slope downward. Political parties can compete for votes by offering pivotal voters lower tax shares, but when they do, a lower...
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This paper describes the problem specification searches pose for inference, presents the results of some simulations for purposes of illustration, and uses the bootstrapping procedure to give a better estimate of statistical significance than a standard t-test. The value of the illustrations of...
Persistent link: https://www.econbiz.de/10005418734
This article compares OLS, the normal-half normal stochastic frontier approach (SFA) and the thick frontier approach (TFA) to an alternative thick frontier approach based on a mixture approach. Unlike the TFA approach, the new approach developed here uses all of the data, does not require...
Persistent link: https://www.econbiz.de/10009206761
In a recent volume of this journal, Holden [Testing the normality assumption in the Tobit Model, J. Appl. Stat. 31 (2004) pp. 521-532] presents Monte Carlo evidence comparing several tests for departures from normality in the Tobit Model. This study adds to the work of Holden by considering...
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