Lawrence R. Klein pioneered the work on aggregation, in particular in production functions, in the 1940s. He paved the way for researchers to establish the conditions under which a series of micro production functions can be aggregated so as to yield an aggregate production function. This work...

Econometrics demands that economists be familiar both with mathematical statistics and with different branches of higher mathematics. Economists – Lombardini argues in his essay – believe this scientific discipline has some utility, insofar as it paves the way to new perspectives and new...

We review key aspects of forecasting using nonlinear models. Because economic models are typically misspecified, the resulting forecasts provide only an approximation to the best possible forecast. Although it is in principle possible to obtain superior approximations to the optimal forecast...

In this paper, we use stochastic frontier analysis to examine whether differences in the transfer and absorption of technology help to explain cross-country differences in national efficiency levels in sub-Saharan Africa over the period 1970–2010. We find that trade policy on openness,...