Hierarchies are pervasive in political settings. From judges to elected politicians, from activists to bureaucrats, political agents compete to be promoted to higher positions. This paper studies political tournaments and their impact on key aspects of political performance: accountability and...

We present a new and easy-to-implement sequential sampling method for CGMY processes with either finite or infinite variation, exploiting the time change representation of the CGMY model and a decomposition of its time change. We find that the time change can be decomposed into two independent...

We develop a test for stationarity of latent volatility curves over time using high-frequency financial data. For deriving the asymptotic size and power of the test, we establish a functional invariance principle for semimartingales under a strong mixing condition. The power properties of our...