Many variations exist of yield curve modeling based on the exponential components framework, but most do not consider the generating process of the error term. In this paper, we propose a method of yield curve estimation using an instantaneous error term generated with a standard Brownian...

Several models are proposed for analyzing consumer demand systems. Empirical researchers usually, adopt one or more models and test some constraints based on demand theory, and then evaluate the plausibility of the models. However, they rarely adopt a statistical model selection procedure in...