A model for principal components of correlation matrices is proposed. The model satisfies the correlation constraint (i.e., unit valued diagonal elements) as well as optional constraints on eigenvalues and/or eigenvectors. The model yields simplified principal components that retain both...

This paper undertakes a Monte Carlo study to compare MLE-based and GMM-based tests regarding the spatial autocorrelation coefficient of the error term in a Cliff and Ord type model. The main finding is that a Wald-test based on GMM estimation as derived by Kelejian and Prucha (2005a) performs...

This paper undertakes a Monte Carlo study to compare MLE-based and GMM-based tests regarding the spatial autocorrelation coefficient of the error term in a Cliff and Ord type model. The main finding is that a Wald-test based on GMM estimation as derived by Kelejian and Prucha (2005a) performs...

In experimental economics, where subjects participate in different sessions, observations across subjects of a given session might exhibit more correlation than observations across subjects in different sessions. The main goal of this paper is to clarify what are session-effects: what can cause...

The interpretation of dummy variables in regressions where the dependent variable is subject to a log transformation has been of continuing interest in economics. However, in the main, these earlier papers do not deal with the inferential aspects of the parameters estimated. In this paper we...

This paper analyzes data from an investigation of a majoritarian bargaining experiment. A learning model is proposed to account for the evolution of play in this experiment. It is also suggested that an adjustment must be made to account for the panel structure of the data. Such adjustments have...