This paper discusses two alternative two-part models for fractional response variables that are defined as ratios of integers. The first two-part model assumes a Binomial distribution and known group size. It nests the one-part fractional response model proposed by Papke and Wooldridge (1996)...

In a cross-section where the initial distribution of observations differs from the steady-state distribution and initial values matter, convergence is best measured in terms of σ-convergence over a fixed time period. For this setting, we propose a new simple Wald test for conditional...