Statistical procedures are developed for reducing the number of autonomous state variables in stochastic dynamic optimization models when these variables follow a stationary process over time. These methods essentially delete part of the information upon which decisions are based while...

A heuristic criterion for choosing an acceptable level of bias in ridge regression is presented. The criterion is based on a noncentral F-test of the stochastic restrictions implicit in the ridge estimator. An appropriate significance level for the test is based on conjunctive use of strong and...

The following paper outlines a new econometric model designed to capture both the temporal and spatial dynamics of housing prices. The paper combines existing spatial econometric techniques with a model that allows parameters to evolve over time. In addition, we provide an empirical application...

We develop testable hypotheses for utility maximization given risk averse producers based on a general specification of the utility function. This is a direct expansion of the model posed by Pope (1978). Empirical tests using production data with a translog specification indicate that utility...