The power of the Houck's model of asymmetry is examined via bootstrap and Monte Carlo techniques. The results of bootstrap and Monte Carlo simulations indicate that the power of the Houck's test for asymmetry depends on sample size, level of asymmetry and the amount of noise in the data...

Information Criteria provides an attractive basis for selecting the best model from a set of competing asymmetric price transmission models or theories. However, little is understood about the sensitivity of the model selection methods to model complexity. This study therefore fits competing...