We compare Bayesian and sample theory model specification criteria. For the Bayesian criteria we use the deviance information criterion and the cumulative density of the mean squared errors of forecast. For the sample theory criterion we use the conditional Kolmogorov test. We use Markov chain...

From July 1978 to April 1989 Taiwan adopted a snake system by allowing the foreign exchange rate to fluctuate within a narrow band of the centered rate. Using monthly data on the Taiwan dollar/U.S. dollar exchange rate, we show that inference on the purchasing power parity hypothesis is...

The analysis of Tobit model with non-normal error distribution is extended to the case of asymmetric Laplace distribution (ALD). Since the ALD probability density function is known to be continuous but not differentiable, the usual mode-finding algorithms such as maximum likelihood can be...

Earlier the author, together with his collegue, developed a growth model of the Canadian economy (9) which concentrated on the Gross Domestic Product (GDP) side, and from this earlier experience it was found desirable to incorporate not only the GDP side but also the gross national expenditure...