Thirty-five years ago, J. W. Pratt and Robert Schlaifer published a critique of then ruling econometric techniques. Introducing a distinction between factors and concomitants in regressions, they determined that a “condition for consistent estimation stated in virtually every book on...

This paper contributes to the literature on the estimation of causal effects by providing an analytical formula for individual specific treatment effects and an empirical methodology that allows us to estimate these effects. We derive the formula from a general model with minimal restrictions,...

This paper provides estimates of the demand for both narrow and broad monetary aggregates for the five largest industrial countries using two recent approaches: buffer stock and error correction models. The performances of these models are compared with several versions of the conventional...