No abstract.

It is well known that most of the standard speci¯cation tests are not valid when the alternative hypothesis is misspeci¯ed. This is particularly true in the error component model, when one tests for either random e®ects or serial correlation without taking account of the presence of the other...

This study examines the interdependence among municipalities in the discrete decision to adopt internet technology. Results from probit specifications with interaction effects suggest that cities are influenced by nearby neighbours with similar population size in developing a website. Evidence...

It is well known that most of the standard specification tests are not robust when the alternative is misspecified. Using the asymptotic distributions of standard Lagrange multiplier (LM) test under local misspecification, we suggest a robust specification test. This test essentially adjusts the...

People sort over space due to (among other factors) the demand for amenities. This demand is partially determined by income. Using data from southern California, we investigate how variation in air quality affects residential sorting by income. We find that sorting caused by air quality...

This study tests for fiscal interdependence in the provision of a local public good—libraries in Los Angeles County. The authors present evidence that the reaction of libraries to fiscal externalities is dependent on the level of government producing the good. The authors find that the...

Engel and Rogers (1996) find that crossing the US-Canada border can considerably raise relative price volatility and that exchange rate fluctuations explain about one-third of the volatility increase. In re-evaluating the border effect, this study shows that cross-country heterogeneity in price...

Previous findings of long-run purchasing power parity come mainly from data for industrial countries, raising the issue of whether the results suffer sample-selection bias and exaggerate the general relevance of parity reversion. This study uncovers substantial cross-country heterogeneity in the...