Stringency provides a global method for finite sample test comparison which is intuitive and provide sharp and clear cut answers. In contrast, typical methods yield inconclusive results because each test has some areas of weaknesses and strengths. This paper illustrates and explains the method...

Analytic evaluation of heteroskedasticity consistent covariance matrix estimates (HCCME) is difficult because of the complexity of the formulae currently available. We obtain new analytic formulae for the bias of a class of estimators of the covariance matrix of OLS in a standard linear...

A literature search shows that robust regression techniques are rarely used in applied econometrics. We present a technique based on Rousseeuw and Van Zomeren (Journal of the American Statistical Association, 85 (1990) 633–639) that removes many of the difficulties in applying such techniques...