The average of periodic growth rates is a downwardly biased estimator of the rate of growth of a country. The higher the variance of the periodical growth rates, the higher the downward bias. The longer the business cycle, the higher the downward bias. In this short paper, we demonstrate these...

We suggest graphical tools that indicate whether the relationship between variables in regression is monotonic. If not, the tools identify sections with different signs and inform on possibilities and types of monotonic transformations that can change the sign of the coefficient.

We study the optimal observability of the tax base within the standard linear income tax problem, where observability is determined by the government's investment into the accurate measurement of the tax base.