This paper puts forth a concept of Adptivety Rational Equilibrium (A.R.E) where agents base decisions upon predictions of future values of endogenous variables whose actual values are determined by equilibrium equations.

This paper studies properties of stochastic objective functions, that is, objective functions which can be written as the expected value of a payoff function.

The appearance of the normal density remained unexplained in Mertens and Zamir's proof: it appeared there as the solution of a differential equation. Our proof however justifies this normal density as a consequence of a generalisation of the CLT discussed in the second part of this paper.

Methods for scoring ordered classifications in ordered statistical analysis are reviewed. These contrast with model based approaches through generalised linear models. The practical empirical advantages of scoring functions are developed.

This paper formulates a conformity test for cointegration for a multivariate I(1) process obeying a VAR specification. The test statistic is a function of the characteristic roots of the sample covariance matrix of the cointegral vector; the latter is obtained from the unrestricted estimation of...

The Cox statistic for non nested models is used to test the probit and logit specifications estimated by Bardasi and Monfardini (1997) for the occupational choice of the Italian workers among the private, the public and the self-employed options. Computation of different versions of test is...