Showing 1 - 10 of 18
It is known that Dickey-Fuller tests can lead to spurious rejections of the unit root nullhypothesis when the true generating process is difference-stationary with a break.Suppose now that an unsuccessful attempt is made to allow for a break, either throughmisplaced dummy variables or through...
Persistent link: https://www.econbiz.de/10005869190
Hedonic pricing provides a method of establishing implicit values for the non-priced attributeswhich comprise a marketed good. A model for cigarettes is posited and estimated using a sample ofcigarette brands sold in the United Kingdom. A market segmented on the basis of cigarette size isfound...
Persistent link: https://www.econbiz.de/10005869192
Futures market efficiency has been one of the most researched topics for a number of years.The huge amount of results produced, highly dependent on the econometric techniquesadopted and on the time period analysed, are often conflicting: for a given market, someauthors find evidence of...
Persistent link: https://www.econbiz.de/10005869194
This note develops a method of recovering individual preferences, and of obtaining money-metricindividual welfare comparisons, from demand functions generated by Cournot-Nash equilibria ingames with public goods.
Persistent link: https://www.econbiz.de/10005869209
The relationship between inflation and the relative variability of prices has been the subject ofcareful investigation in the US using data for product groups at the city level. Yet in Europe,where the relationship could have profound effects on the viability of monetary integration, noattempt...
Persistent link: https://www.econbiz.de/10005869301
We examine the status of the maximization hypothesis in the positive economic theory ofrational choice. We argue that, contrary to a common belief, the maximization hypothesisdoes not play any role in large areas of positive rational choice theory. In contexts where itdoes, it is not logically...
Persistent link: https://www.econbiz.de/10005869303
We test for mean reversion in real exchange rates using data from five countries, four of whichhave experienced episodes of high inflation. We use monthly data for Argentina, Brazil, Chile,Colombia and Israel from 1972 to 1993 and find that in all cases except Brazil a stochastic unitroot model...
Persistent link: https://www.econbiz.de/10005869305
Several policy issues arise in this context. If households are unable or unwilling to move inold age, their consumption behaviour may be constrained by asset illiquidity...
Persistent link: https://www.econbiz.de/10005869306
This paper analyzes the problem of deriving the law of supply from plausible restrictions onobserved input-output choices of a competitive firm, when the firm makes random input-outputdecisions. It models such random production behavior in terms of a stochastic supply function,and introduces a...
Persistent link: https://www.econbiz.de/10005869311
We present a new approach to estimating health gains from treatments by asking respondentsto directly compare the ‘before’ and ‘after’ treatment health states in the time trade-off (TTO)framework. We found that responses to these direct comparisons were much more likely tocapture a...
Persistent link: https://www.econbiz.de/10005869318