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We consider impulse response inference in a locally misspecified stationary vector autoregression (VAR) model. The conventional local projection (LP) confidence interval has correct coverage even when the misspecification is so large that it can be detected with probability approaching 1. This...
Persistent link: https://www.econbiz.de/10014544773
Least squares regression with heteroskedasticity consistent standard errors ("OLS-HC regression") has proved very useful in cross section environments. However, several major difficulties, which are generally overlooked, must be confronted when transferring the HC technology to time series...
Persistent link: https://www.econbiz.de/10014576582
find evidence of a marked flattening in the Phillips curves for US sectoral data and among EU countries, particularly … poorer ones. Conversely, evidence of a flattening is weaker for MSA-level data and for the wage Phillips curve. US regional …
Persistent link: https://www.econbiz.de/10014250170
the Project STAR trial, we find minimal bias because treatment effect heterogeneity is largely idiosyncratic. But sizeable … contamination bias arises when effect heterogeneity becomes correlated with treatment propensity scores …
Persistent link: https://www.econbiz.de/10013334327
We suggest a new single-equation test for Uncovered Interest Parity (UIP) based on a dynamic regression approach. The method provides consistent and asymptotically efficient parameter estimates, and is not dependent on assumptions of strict exogeneity. This new approach is asymptotically more...
Persistent link: https://www.econbiz.de/10013462687
, we re-examine the evidence for this predictor for the United States, other high-income countries, as well as selected …
Persistent link: https://www.econbiz.de/10014468283
We calculate impulse response functions from regime-switching models where the driving variable can respond to the shock. Two methods used to estimate the impulse responses in these models are generalized impulse response functions and local projections. Local projections depend on the observed...
Persistent link: https://www.econbiz.de/10014372466
A central question in applied research is to estimate the effect of an exogenous intervention or shock on an outcome …
Persistent link: https://www.econbiz.de/10015056147
minimum on teenagers. Finally, we survey the evidence of the effect of the minimum wage on adult employment, and on employment …In this paper, we survey theoretical models of the effect of the minimum wage and, in somewhat greater detail, evidence … of its effect on employment and unemployment. Our discussion of the theory emphasizes recent work using two-sector and …
Persistent link: https://www.econbiz.de/10012478265
negative employment effects of minimum wages. In addition, among the papers we view as providing the most credible evidence …We review the burgeoning literature on the employment effects of minimum wages - in the United States and other … wide range of existing estimates and, accordingly, a lack of consensus about the overall effects on low-wage employment of …
Persistent link: https://www.econbiz.de/10012465998