This paper proposes a standard for notation in econometrics. It presents a fully integrated and internally consistent framework for notation and abbreviations, which is as close as possible to existing common practice. The symbols used are instantly recognizable and interpretable, thus...

We take a fresh look at Theil's BLUS residuals and ask why they have gone out of fashion. All our simulation experiments indicate that tests based on BLUS residuals have higher power than those based on the more popular recursive residuals, even in those cases (structural breaks) where intuition...

Many definitions in matrix algebra are not standardized. This notediscusses some of thepitfalls associated with undesirable orwrong definitions, anddealswith central conceptslikesymmetry, orthogonality, square root, Hermitian and quadratic forms, and matrix derivatives.

We present an analytical closed-form expression for the asymptotic variance matrix in the misspecified multivariate regression model.

Cheating is a serious problem in many countries. The cheater gets higher marks than deserved, thus reducing the efficiency of a country’s educational system. In this study, the authors did not ask if and how often the student had cheated, but rather what the student’s opinion was...

We consider the estimation of the unknown mean "&eegr;" of a univariate normal distribution N("&eegr;", 1) given a single observation "x". We wish to obtain an estimator which is admissible and has good risk (and regret) properties. We first argue that the "usual" estimator "t" ("x") = "x" is not...