Purpose – The purpose of this paper is to look at the power of the Student t -test applied to two independent samples when returns from AR(1) process are categorized into two samples by moving average buy-sell trading rule. Design/methodology/approach – Simulation and empirical study for...

Abstract We develop simple tests for endogenous prices arising from omitted demand factors in discrete choice models. Our approach only requires one to locate testing proxies that have some correlation with the omitted factors when prices are endogenous. We use the difference between prices and...