This paper proposes a two-equation price-wage model that enables to test whether the inflationary pressure on wage rate is only present when the rate of inflation is greater than some threshold value. Since the likelihood function for this model is very nonstandard, we develop a small-sample...

This paper proposes a two-equation price-wage model that enables to test whether the inflationary pressure on wage rate is only present when the rate of inflation is greater than some threshold value. Since the likelihood function for this model is very nonstandard, we develop a small-sample...

This article seeks to improve understanding of cross-country patterns of economic growth. It adopts a stochastic production-frontier model that allows for the decomposition of output change into input, efficiency, and technical change. The production frontier is assumed to depend on effective...

We represent random variables $Z$ that take values in $\Re^n-\{0\}$ as $Z=RY$, where $R$ is a positive random variable and $Y$ takes values in an $(n-1)$-dimensional space $\cal Y$. By fixing the distribution of either $R$ or $Y$, while imposing independence between them, different classes of...

In this paper we describe the use of modern numerical integration methods for making posterior inferences in composed error stochastic frontier models for panel data or individual cross- sections. Two Monte Carlo methods have been used in practical applications. We survey these two methods in...

We develop a fully Bayesian framework for analysis and comparison of two competing approaches to modelling daily prices on different markets. The first approach, prevailing in financial econometrics, amounts to assuming that logarithms of prices behave like a multivariate random walk; this...

Often daily prices on different markets are not all observable. The question is whether we should exclude from modelling the days with prices not available on all markets (thus loosing some information and implicitly modifying the time axis) or somehow complete the missing (non-existing) prices....