Statistically significant results are more rewarded than insignificant ones, so researchers have the incentive to pursue statistical significance. Such p-hacking reduces the informativeness of hypothesis tests by making significant results much more common than they are supposed to be in the...

As a purpose of most regression analyses, valid inference is the advantage of the two-stage data envelopment analysis (DEA). This study proposes a bootstrapping procedure to test a joint hypothesis in two-stage DEA. Since the DEA estimates are used to replace the unobservable true efficiency...

Empirical researchers often perform model specification tests, such as the Hausman test and the overidentifying restrictions test, to confirm the validity of estimators rather than the validity of models. This paper examines the effectiveness of specification pretests in finding invalid...

A Stochastic Arbitrage Opportunity is defined as a zero-cost investment portfolio that enhances every feasible benchmark portfolio for all admissible utility functions. The present study provides a formal theory of consistent estimation of the set of arbitrage opportunities and an Empirical...

Systemic risk has drawn the attention of many researchers and financial institutions since the recent financial crisis. Popular systemic risk measures include CoVaR, CoES, MES and SRISK etc. However, there are only a few methods available on modeling these measures, and even less papers on...

Group testing is an efficient method of conducting massive tests using limited resources. We consider a group testing problem with the aim of deriving an optimal partition policy that minimizes the systematic objective, which is the weighted sum of the expected false-negative classifications,...