The bootstrap is a convenient tool for calculating standard errors of the parameter estimates of complicated econometric models. Unfortunately, the fact that these models are complicated often makes the bootstrap extremely slow or even practically infeasible. This paper proposes an alternative...

Haavelmo's seminal 1943 paper is the first rigorous treatment of causality. In it, he distinguished the definition of causal parameters from their identification. He showed that causal parameters are de fined using hypothetical models that assign variation to some of the inputs determining...

A concept and mathematical model of modern economics are formulated in which a company profit is defined when taking into account possible interests of individual decision makers rather than based exclusively on benefits of either the company (ground of microeconomics) or the whole society...

International large-scale assessments such as PISA are increasingly being used to benchmark the academic performance of young people across the world. Yet many of the technicalities underpinning these datasets are misunderstood by applied researchers, who sometimes fail to take their complex...

We analyse the costs and benefits of increasing capital requirements for Danish banks. Costs can be close to 0 if banks suspend dividend payments for a period of time as banks accumulate capital and if investors' required return falls. The latter implies that the Modigliani-Miller effect is...

The Blinder-Oaxaca decomposition was developed in order to detect and characterize discriminatory treatment, and one of its most frequent use has been the study of wage discrimination. It recognizes that the mere difference between the average wages of two groups may not mean discrimination (in...

It is well-known that outliers exist in the type of multivariate data used by financial practitioners for portfolio construction and risk management. Typically, outliers are addressed prior to model fitting by applying some combination of trimming and/or Winsorization to each individual...

We propose an approach to modeling and estimating discrete choice demand that allows for a large number of zero sale observations, rich unobserved heterogeneity, and endogenous prices. We do so by modeling small market sizes through Poisson arrivals. Each of these arriving consumers then solves...

Infiltration of machine learning (ML) methods into econometrics has remained relatively slow, compared with their extensive applications in many other disciplines. The bottleneck is traced to two key factors – a communal nescience of the theoretical foundation of ML and an outdated probability...

This paper introduces in statistics the notion of the barycenter of the distribution of a non-negative random variable and explores its relation with the Gini index, the concentration area, and the Gini’s mean difference. The introduction of the barycenter allows for new economic, geometrical,...