In this paper, a random coefficient simultaneous equation system is used to study Direct Foreign Investment by French firms. The problem of formulating and estimating a random coefficient system is discussed at first in a general setting and an easily implementable solution is proposed. The...

The relationship between statistics and economics is analyzed from two view-points. First, the fundamental role played by statistical inference in estimating economic relations and in testing underlying hypotheses in examined. Second, examples are given to show how new ideas emerge from the...