Using data from the UK Community Life Survey, we present the first study to examine the relationship between heterogeneity in one’s friendship network and subjective wellbeing. We measure network heterogeneity by the extent to which one’s friends are similar to oneself with regard to...

This paper extends prior theory linking present-day sex ratios to present-day propensity for entrepreneurship among men backward in time to explore the long-run gender origins of entrepreneurship. We argue that present-day propensity for entrepreneurship among men will be higher in...

We examine whether having a parent who smoked during one's childhood or adolescence increases the probability of being in energy poverty in adulthood. We find that people who had a parent who smoked when they were young are 0.8 to 1.4 percentage points more likely to be in energy poverty later...

This paper studies a model with both a parametric global trend and a nonparametric local trend. This model may be of interest in a number of applications in economics, finance, ecology, and geology. The model nests the parametric global trend model considered in Phillips (2007) and Robinson...

The properties of the two stage least squares (TSLS) and limited information maximum likelihood (LIML) estimators in panel data models where the observables are affected by common shocks, modelled through unobservable factors, are studied for the case where the time series dimension is fixed. We...

This paper studies the effects of common shocks on the OLS estimators of the slopes' parameters in linear panel data models. The shocks are assumed to affect both the errors and some of the explanatory variables. In contrast to existing approaches, which rely on using results on martingale...

This paper considers the problem of testing cross-sectional correlation in large panel data models with serially-correlated errors. It finds that existing tests for cross-sectional correlation encounter size distortions with serial correlation in the errors. To control the size, this paper...

A framework for pricing Asian power options is developed when the underlying asset follows a jumpfraction process. The partial differential equation (PDE) in the fractional environment with jump is constructed for such option using general Itô’s lemma and self-financing dynamic strategy. With...

Maximum-minimum bidirectional options are a kind of exotic path dependent options. In the constant elasticity of variance (CEV) model, a combining trinomial tree was structured to approximate the non-constant volatility that is a function of the underlying asset. On this basis, a simple and...

We examine the impact of temperature shocks and climate change on household financial behaviour in Viet Nam. To do so, we first estimate the effect of temperature on household borrowing and savings using Vietnamese longitudinal data that matches satellite reanalysis temperature data with...