In this paper we investigate the properties of the Lagrange Multiplier (LM) test for autoregressive conditional heteroskedasticity (ARCH) and generalized ARCH (GARCH) in the presence of additive outliners (AO's). We show analytically that both the asymptotic size and power are adversely...

We show that the empirical process of the squared residuals of an ARCH(p) sequence converges in distribution to a Gaussian process B (F(t)) + tf(t)E , where F is the distribution function of the squared innovations, f its derivative, {B(t), 0= t = 1} a Brownian bridge and E a normal random...

This paper tests the insiders' dilemma hypothesis in a laboratory experiment. The insiders' dilemma means that a profitable merger does not occur, because it is even more profitable for each firm to unilaterally stand as an outsider (Kamien and Zang, 1990 and 1993). The experimental data...

In this study we evaluate some effects of the reform of the welfare system that took place in the Province of Quebec in August 1989. This reform abolished the discrimination based on age that applied to the benefits single individuals and childless couples below the age of 30 were entittled to.

We compare the random preference, Fechner, and constant error (or "tremble") approaches to the stochastic modelling of choice under risk. Various combinations of these approaches are used with expected utility and rank-dependent theory to generate a set of econometric models. These are estimated...

Sample attrition is a potential source of selection bias in experimental as well as non-experimental programme evaluation. For labour market outcomes such as employment status and earnings, missing data problems caused by attrition can be circumvented by collection of follow-up data from...

I introduce a solution concept for infinite-horizon games, called ``Experimental Equilibrium``, in which players systematically test threats that affect their optimal response. Both the tests and the optimal response are part of equilibrium behavior.

Recent years have witnessed a growth of interest in experimental economics. Indeed, it has become a rather influential project. Somewhat surprisingly, although it is a project unqeustionably concerned with method, it appears to have generated very little sustained methodological discussion....

The organisation of the paper is as follows. Section II provides a short review of the job search and job-match theory, together with a discussion of previous empirical findings. In Section III, we give a brief description of some institutional features of the Norwegian educational system and...