We provide a methodology to disentangle the long-run relation between variables from their own dynamics. Macroeconomic and aggregate financial series have a high degree of inertia. If this persistence is not properly accounted for, spurious correlations will give rise to paradoxes. Our procedure...

In India, year-on-year percentage changes of price indexes are widely used as the measure of inflation. In terms of monthly data, each observation of a one-year change in inflation is the sum of twelve one-month changes. This suggests that better information about inflationary pressures can be...

Using a microbased superpopulation approach some aspects of optimal prediction of aggregated AR(1) processes are studied.

The steady growth in the utilisation of wind power for electricity generation has led to increased interest in methods for synthetically generating wind speeds that are able to more accurately determine the site potential.

In financial markets, not only prices and returns can be considered as random variables, but also the waiting time between two transactions varies randomly. In the following, we analyse the statistical properties of General Electric stock prices, traded at NYSE, in October 1999. These properties...

The classical statistical diffusion theory and the binomial autocorrelation function are used to obtain a new formulation for the turbulence dissipation rate ε. The approach employs the Maclaurin series expansion of a logarithm function contained in the dispersion parameter formulation. The...