Showing 1 - 10 of 50
We study several tests for the coefficient of the single right-hand-side endogenous variable in a linear equation estimated by instrumental variables. We show that writing all the test statistics -- Student's t, Anderson-Rubin, the LM statistic of Kleibergen and Moreira (K), and likelihood ratio...
Persistent link: https://www.econbiz.de/10005688347
We study several methods of constructing confidence sets for the coefficient of the single right-hand-side endogenous variable in a linear equation with weak instruments. Two of these are based on conditional likelihood ratio (CLR) tests, and the others are based on inverting t statistics or the...
Persistent link: https://www.econbiz.de/10009320849
Little attention has been paid to the finite-sample properties of tests for overidentifying restrictions in linear regression models with a single endogenous regressor and weak instruments. We study several such tests in models estimated by instrumental variables (IV) and limited-information...
Persistent link: https://www.econbiz.de/10010757310
This paper develops a model of strategic behaviour in continuous time games of complete information. This model bridges the gap between the differential formulation of a continuous time game and the procedure of taking limits with respect to discrete time games. The model admits a large class of...
Persistent link: https://www.econbiz.de/10005490198
This paper introduces a general framework for the discussion of renegotiation in repeated games, provides a new concept of "renegotiation proof" equilibrium, and shows how this model clarifies and unifies existing work in this area. The procedure involves restricting axiomatically the class of...
Persistent link: https://www.econbiz.de/10005497223
This paper discusses the influence of Canadian corporate tax rates on the debt-asset ratios of Canadian firms, 1970-82. Five theoretical models are reviewed and used to construct a linear encompassing model of financial structure. Empirical evidence from Canadian firms from COMPUSTAT files...
Persistent link: https://www.econbiz.de/10005653074
This paper looks at the joint determination of international indebtedness and capital accumulation in a two-country model. National rates of time preference are endogenous, and adjust along an optimal path to come into equality with one another in the steady state. A country's level of...
Persistent link: https://www.econbiz.de/10005688228
The incentive to advertise is a consequence of monopoly power, for there is nothing to gain from advertising by a firm that can sell its entire output at an invariant market price. Advertising is expenditure by a firm to increase the elasticity of demand for its product or to shift the demand...
Persistent link: https://www.econbiz.de/10005688285
The paper investigates whether there are variants of the permanent income model which are consistent with quarterly, seasonally unadjusted post-war Canadian data. The model estimates about 20 percent of consumers follow the rule of thumb of consuming their current income. This suggests a large...
Persistent link: https://www.econbiz.de/10005688412
We contrast the supply condition governing the rate of extraction of durable exhaustible resources such as gold with rates of extraction of non-durable exhaustible resources such as oil. In two simple general equilibrium models, Hotelling's rule governs supply for non-durable resources, but a...
Persistent link: https://www.econbiz.de/10005688527