Since the beginning of the 1990's, sick leave benefits accruing from the tax-financed Swedish social security insurance have been reduced a number of times. In this paper we use data from the survey on the Household Market and Non-market activities to estimate a fixed effects negative binomial...

This paper addresses the question of how to model individual behavior in the face of changes in the set of rules that govern the social welfare system in Sweden. To this end, the Swedish sickness insurance provides an excellent study object, since the system has often been changed during the...

Modern econometrics stresses the diagnostic testing of estimated models as an important part of the model-building process. In a survey article published in this journal (Pagan and Vella 1989), methods for testing the validity of the assumptions underlying the censored regression of the Tobit...

The Breusch-Godfrey test for autocorrelated errors is generalised to cover systems of equations, and the properties of 18 versions of the test are studied using Monte Carlo methods. We show that only one group of tests regularly has actual size close to the nominal size; namely the likelihood...

This article highlights the until quite recently neglected political-economic thinking in matters of defense in twentieth-century Britain. It argues that retrieving such analyses from the interwar years is an excellent although partial way to get at an alternative picture of interwar defense...

In this paper we propose a unified framework for testing weak separability. We present a new three-step procedure, which is a joint test of necessary and sufficient conditions that takes account of possible measurement error and incomplete adjustment. We illustrate the operational capability of...

This paper proposes Lagrange multiplier based tests for the null hypothesis of no cointegration. The tests are general enough to allow for heteroskedastic and serially correlated errors, deterministic trends, and a structural break of unknown timing in both the intercept and slope. The limiting...

In this paper we propose a unified framework for testing weak separability. We present a new three-step procedure, which is a joint test of necessary and sufficient conditions that takes account of the possibilities of both measurement error and incomplete adjustment. We illustrate the...

In this paper we develop a simple maximum likelihood estimator for probit models where the regressors have measurement error. We first assume precise information about the reliability ratios (or, equivalently, the proxy correlations) of the regressors. We then show how reasonable bounds for the...