In this paper we reconsider the formal estimation of the risk of financial intermediaries. Risk is modeled as the variability of the profit function of a representative intermediary, here a bank, as formally considered in finance theory. In turn, banking theory suggests that risk is determined...

This article proposes a general empirical method for the estimation of marginal cost of individual firms. The new method employs the smooth coefficient model, which has a number of appealing features when applied to cost functions. The empirical analysis uses data from a unique sample from which...

This article offers a methodology to address the endogeneity of inputs in the input distance function (IDF) formulation of the production processes. We propose to tackle endogenous input ratios appearing in the normalized IDF by considering a flexible (simultaneous) system of the IDF and the...

Use of variability of profits and other accounting-based ratios in order to estimate a firm's risk of insolvency is a well-established concept in management and economics. This paper argues that these measures fail to approximate the true level of risk accurately because managers consider other...

This paper offers a methodology to address the endogeneity of inputs in the directional technology distance function (DTDF) based formulation of banking technology which explicitly accommodates the presence of undesirable nonperforming loans --- an inherent characteristic of the bank's...

In this work, we investigate the determinants of the Greek Business Cycle in the time period 1995-2014. To this end, we make use of a wide dataset in a quarterly format, which contains all the major macroeconomic and financial variables that have had a certain impact on the Greek economy. We...

The modeling process of bubbles, using advanced mathematical and econometric techniques, is a young field of research. In this context, significant model misspecification could result from ignoring potential non- linearities. More precisely, the present paper attempts to detect and date non-...

In this paper, using a dynamic panel of 21 OECD countries, we find that, unlike the other OECD countries in the sample, wage setting institutions, competition conditions, public finances, and external imbalances can account for the behavior of the public sector wage premium (WPR) and the...

This study investigates the long run relationship between government size and unemployment rate, the Abrams curve, using ten European countries over the period 1961-1999. To this end, panel cointegration analysis and estimation techniques appropriate for heterogeneous panels are made use of. The...

The paper utilizes modern econometric techniques organized around I(1) and cointegration analysis to examine the number of common, stochastic long-run trends in regional incomes and assess the hypothesis of regional convergence for the US over the period 1929-1997. Time series evidence is...