In this article we derive necessary and sufficient conditions for the nonnegativity of the conditional variance in the fractionally integrated generalized autoregressive conditional heteroskedastic (p, d, q) (FIGARCH) model of the order p d 2 and sufficient conditions for the general model....

Rationality places strong restrictions on individual consumer behavior. This paper is concerned with assessing the validity of the integrability constraints imposed by standard utility maximization, arising in classical consumer demand analysis. More specifically, we characterize the testable...

In this paper we consider endogenous regressors in the binary choice model under a weak median exclusion restriction, but without further specification of the distribution of the unobserved random components. Our reduced form specification with heteroscedastic residuals covers various...