Dagenais (1999) and Lucchetti (2002) have demonstrated that the naive GMM estimator of Grogger (1990) for the probit model with an endogenous regressor is not consistent. This paper completes their discussion by explaining the reason for the inconsistency and presenting a natural solution....

Interpreting Granger causality as economic causality implies that the underlying VAR model is a structural economic model. However, this is wrong if simultaneity occurs. Magnitude and stability of possible errors are analysed in a simulation study. It is shown that economic misinterpretations of...

The inference in probit models relies on the assumption of normality. However, tests of this assumption are not implemented in standard econometric software. Therefore, the paper presents a simple representation of the Bera-Jarque-Lee test, that does not require any matrix algebra. Furthermore,...

Overcoming long-term unemployment is a challenging task in which trust of the long-term unemployed in their caseworkers is a key issue. However, research about drivers of this trust is a white spot in the literature. The paper closes this gap. Embedded in a theoretical model at the...

Dagenais (1999) and Lucchetti (2002) have demonstrated that the naive GMM estimator of Grogger (1990) for the probit model with an endogenous regressor is not consistent. This paper completes their discussion by explaining the reason for the inconsistency and presenting a natural solution....

Die Reformdiskussion für die soziale Grundsicherung für Erwerbsfähige konzentriert sich in der Regel auf eine Verbesserung der finanziellen Anreize zur Aufnahme einer Erwerbstätigkeit und auf Maßnahmen des "workfare". Das vorliegende Papier verbreitert die Diskussion mit Hilfe eines...

The inference in probit models relies on the assumption of normality. However, tests of this assumption are not implemented in standard econometric software. Therefore, the paper presents a simple representation of the Bera-Jarque-Lee test, that does not require any matrix algebra. Furthermore,...