This paper investigates the relationship between trade openness and the sacrifice ratio for 126 countries from 1973 to 2007. The instrumental variable quantile regression method is used to explain heterogeneous impact of openness on sacrifice ratio, where openness is endogenous. Empirical...

Conventional wisdom argues that the relation between central bank independence (CBI) and inflation is negative. However, empirical studies based upon regressing inflation rates on CBI tend to reject this hypothesis and show that there is no negative relationship. This article investigates the...

This paper uses a modified rank score test for non-nested linear regression models. The modified rank score test is robust with respect to models with non-normal distributions and can be viewed as a robust version of the J test of Davidson and MacKinnon (Econometrica 49:781-793, 1981)....