Using historical time-series data, we test for convergence and common trends in real per capita output for New Zealand and her four major trading partners. Both bivariate and multivariate time-series methods are used, and we also implement the fuzzy c-means clustering algorithm as an alternative...

In this paper, we consider a simple preliminary-test estimation problem where the analyst's loss structure is represented by a ‘reflected Normal' penalty function. In particular we consider the estimation of the location parameter in a Normal sampling problem, where a preliminary test is...

We show that the full asymptotic distribution for Watson’s statistic, modified for discrete data, can be computed by standard methods. Previous approximate percentiles for the uniform multinomial case are found to be accurate. More extensive percentiles are presented for this distribution, and...

We consider the relationship between taxes and the size of the underground economy in New Zealand. Previous studies indicate that a positive relationship exists in this and certain other countries. We address the following question: "Is the response of the underground economy to an increase in...

Using generalizations of Benford’s Law we test for the absence of psychological barriers at various price levels in eBay auctions for professional football tickets. Our empirical results indicate that this hypothesis cannot be rejected.

This paper considers the "learning curve" relationship between the aggregate tax rate and the relative size of the hidden economy in New Zealand. Some simple non-linear models are estimated so that the effects of changes in the effective tax rate on the underground economy can be simulated. We...

The Anderson-Darling goodness-of-fit test has a highly skewed and non-standard limit distribution. Various attempts have been made to tabulate the associated critical points, using both theoretical approximations and simulation methods. We show that a standard saddlepoint approximation performs...

A spurious regression model is one in which the dependent and independent variables are non-stationary, but not cointegrated, and the data are not filtered (e.g., by differencing) before the model is estimated. It is well known that in this case the asymptotic behaviour of the least squares...

A “spurious regression” is one in which the time-series variables are non-stationary and independent. It is well-known that in this context the OLS parameter estimates and the R2 converge to functionals of Brownian motions; the “t-ratios” diverge in distribution; and the Durbin-Watson...

This paper considers the "learning curve" relationship between the aggregate tax rate and the relative size of the hidden economy in New Zealand. Some simple non-linear models are estimated so that the effects of changes in the effective tax rate on the underground economy can be simulated. We...