This paper studies the role played by several bank specific financial indicators in determining the process of bank failure in Argentina after the Mexican crisis known as the quot;tequila effectquot;. Due to the relative scarcity of previous studies, this paper priorizes the use of...

This paper studies poverty in Latin America and the Caribbean from a multidimensional perspective, exploiting the Gallup World Poll, a survey that provides a unique opportunity to perform intercountry comparisons. By applying factor analysis we find that welfare can be appropriately summarized...

This article uses a unique panel data set of rural El Salvador to investigate the main sources of persistence and variability in incomes. Our econometric framework validly reduces a general panel model to a dynamic linear model with a covariance structure that can be estimated efficiently with...

An additivity property of LM tests is derived, linking joint, marginal and Bera-Yoon "adjusted" tests, hence the latter can be derived as the difference of the first two. An artificial regression framework provides an intuitive geometrical illustration of the Bera-Yoon principle.

A well known result is that many of the tests used in econometrics, such as the Rao score (RS) test, may not be robust to misspecified alternatives, that is, when the alternative model does not correspond to the underlying data generating process. Under this scenario, these tests spuriously...