The Jordan Form of the VAR's Companion matrix is used for proving the equivalence between the statement that there are no jordan blocks of order two or higher in the Jordan matrix and the conditions of Granger's Representation Theorem for an I(1) series. Furthermore, a Diagonal polynomial matrix...

The Cox statistic for non nested models is used to test the probit and logit specifications estimated by Bardasi and Monfardini (1997) for the occupational choice of the Italian workers among the private, the public and the self-employed options. Computation of different versions of test is...

The vector autoregressive model for seasonal cointegration is analysed. The general error correction model is discussed and conditions are found under which the process is integrated of order 1 at seasonal frequency and exhibits cointegration. Under these conditions a representation theorem for...

The main item of agreement between the 'new' and 'old' economic geography is the role of increasing returns in regional economic development. This provides a focal point for the model of this paper, which aims to highlight the existence of a 'third way' somewhere between the analysis provided by...

We consider multicointegration in the sense of Granger and Lee (1990), that is, the cumulated equilibrium error cointegrates with the process itself. It is shown, that if the process is given by the cointegrated VAR model for I(1) variables, then multicointegration cannot occur. If, however, the...

Asymmetric kernels are quite useful for the estimation of density functions which have bounded support. Gamma kernels are designed to handle density functions whose supports are bounded from one end only, whereas beta kernels are particularly convenient for the estimation of density functions...

This article explains how changing many structural parameters by discrete amounts affect many variables of interest when we have no explicit expressions for the variables of interest in terms of the structural parameters. Although the matrix multiplying a vector of discrete changes in parameters...

This paper proposes an expected utility framework for the treatment of theoretical and empirical issues in technical analysis. Circumstances are found in which a technical analysts' behaviour is 'rationalisable' and schemes for learning such rational behaviour are considered. The decision...

This paper discusses the intellectual origins of the so-called 'new economic geography' and provides its basic insights by means of a streamlined framework which stresses the generality of their implications.

At a competitive equilibrium of an incomplete-markets economy agents’ marginal valuations for the tradable assets are equalized ex-ante. We characterize the finest partition of the state space conditional on which this equality holds for any economy. This leads naturally to a necessary and...