This paper explores the determinants of the heterogeneity in the expenditure behaviors of the Italian households, using the Households Expenditure Survey provided by the Italian National Institute of Statistics (ISTAT) for the year 2005. We assume that differences among consumers are associated...

This paper investigates the factors explaining aid allocation by bilateral and multilateral donors. We use data for 146 aid recipient countries over the period 1990-2007 and employ Bayesian Averaging of Classical Estimates Approach (BACE) approach and find that both the recipient need and donor...

This study applies the Sequential Panel Selection Method (SPSM) to test the mean reversion properties in the current account balance as percentages of GDP for the ten OECD countries (Australia, Canada, Finland, Germany, Korea, Mexico, Norway, Switzerland, United Kingdom and United States) over...

This paper investigates the heterogenous panels Granger causality between exports and Foreign Direct Investment (FDI) for the twelve new EU countries from 1995 until 2010. The cointegration test by Pedroni (1999) shows a long run heterogenous relationship. A two-stage Engle and Granger procedure...

Azzalini's skew-normal distribution is an attractive tool for modeling the skewness observed in many economic and financial variables. Formulas for the odd moments of the skew-normal distribution have been given by Henze (1986) and, more recently, Martinez et al. (2008). This note provides a...

This paper aims to determine which extreme value copula is best suited to the bivariate relationships between shocks of U.S market with Brazilian, Argentine and Mexican markets. We used prices of S&P500, Ibovespa, Merval and IPC from January, 3, 2009 to December, 31, 2010, totaling 483...

The Box-Cox (1964) transformation model is widely used in various fields of econometrics and statistics. Generally, the maximum likelihood estimator under the normality assumption (BC MLE) is used. However, the BC MLE is not consistent under heteroscedasticity, even if the “small...

In this study, we applied a newly-developed Autoregressive Distributed Lag (ADL) test for threshold cointegration, proposed by Li and Lee (2010) to test the validity of long-run purchasing power parity (PPP) for a sample of 18 African countries from January 1985 to September 2008. Empirical...

We propose a computationally efficient approximation for the double bootstrap bias adjustment factor without using the inner bootstrap loop. The approximation converges in probability to the population bias correction factor. We study the finite sample properties of the approximation in the...

In this paper, we employ the Geweke (1982) decomposition method to examine the Granger causality between finance and growth in West Africa. Our sample contains twelve ECOWAS member countries (Economic Community of West African States) and we distinguish two subsamples: seven WAEMU countries...