This research suggests an easy-to-implement forecast combination procedure to deal with the model uncertainty issues when evaluating the cartel damages. We combine the Mallows model averaging (MMA) method with both the dummy variable (DV) and forecasting approaches to investigate the famous...

This paper considers the maximum likelihood estimation of a stochastic frontier production function with an interval outcome. We derive an analytical formula for calculating the likelihood function of the interval stochastic frontier models. Monte Carlo experiments reveal that the finite sample...

This paper proposes a test for detecting out-of-sample structural change in factor-augmented regression (FAR) models, as a complement to the in-sample structural stability tests developed in recent literature. In a set-up with a large number, N, of time series whereby each has some predictive...