Race and ethnicity play a central role in understainding the structure of inequality in the United States. In this paper, we focus on the economic chasm between black and white America and what economic theory can contribute to our understanding of both inequality and the design of effective policy.

Privious work reported that heteroskedasticity did not affect the sampling distribution of the variance ratio, or had assumed that the investigator know a priori the pattern of heteroskedasticity. This paper uses the Gibbs sampling approach in the context of a three state Markov-switching model...

We investigate confidence intervals and inference for the instrumental variables model with weak instruments.