The local power of test statistics is analyzed by considering sequences of data-generating processes (DGPs) that approach the null hypothesis without necessarily satisfying the alternative. The three classical test statistics-LR, Wald, and LM-are shown to tend asymptot ically to the same random...

A new form of the information matrix test is developed for a wide variety of statistical models. The test is constructed against an explicit alternative with random parameter variation. It is computed using a double-length artificial regression instead of the more conventional...

We develop the measurement theory of polarization for the case in which income distributions can be described using density functions. The main theorem uniquely characterizes a class of polarization measures that fits into what we call the "identity-alienation" framework, and simultanously...