We discuss how to test consistently the specification of an ordereddiscrete choice model. Two approaches are considered: tests based onconditional moment restrictions and tests based on comparisons betweenparametric and nonparametric estimations. Following these approaches,various statistics are...

This paper discusses how to test for conditional symmetry in time seriesregression models. To that end, we utilize the Bai and Ng test. We also examinethe performance of some popular (unconditional) symmetry tests for observationswhen applied to regression residuals. The tests considered include...

Testing for unit roots in short-term interest rates plays a key role in the empirical modelling of these series. It is widely assumed that the volatility of interest rates follows some time-varying function which is dependent of the level of the series. This may cause distortions in the...

The focus of this paper is to analyze the evolution of spatial distribution of aggregate economic activity in the European Union during the period 1980-2002. The proposed methodology has as basis to incorporate, systematically, both the distance and the spatial interdependence among the analyzed...

Recent research has reported the lack of correct size in stationarity test for PPP deviations within a linear framework. However, theoretically well motivated nonlinear models, such as the ESTAR, appear to parsimoniously fit the PPP data and provide an explanation for the PPP ¿puzzle¿....

The aim of this paper is to find a possible hysteresis effect on unemployment rate series from Italy, France and the United States. We propose a definition of hysteresis taken from Physics which allows for nonlinearities. To test for the presence of hysteresis we use a nonlinear unobserved...

Hegwood and Papell (2002) conclude on the basis of analysis in a linear framework that long-run purchasing power parity (PPP)\ does not hold for sixteen real exchange rate series, analyzed in Diebold, Husted, and Rush (1991) for the period 1792-1913, under the Gold Standard. Rather, purchasing...

In the context of time series regression, we extend the standard Tobitmodel to allow for the possibility of conditional heteroskedastic error processes of the GARCH type.We discuss the likelihood function of the Tobit model in the presence of conditionally heteroskedastic errors.Expressing the...

The problem of testing a set of restrictions R(q)=0 in a complex hierarchical model is considered. We propose a different approach from the standard PO ratio test, which can be viewed as the Bayesian analogous to the classical Wald type test. With respect to the PO ratio, it has the advantage of...

In this paper, we use a distance-based method, specifically the Ripley’s K function, to evaluate the spatial location patterns of Spanish manufacturing establishments and to assess the different tendencies to cluster in each sector or subsector relative to the whole of manufacturing....