We estimate output growth rate spectra for 58 countries. The spectra exhibit diverse shapes. To study the sources of this diversity, we estimate the short-run, business cycle, and long-run frequency components of the sampled series. For most OECD countries the bulk of the spectral mass is in the...

Small sample <italic>t</italic>-test results are reported in the literature that indicate the difference between futures and forward exchange rates are statistically insignificant. Much research draws on this finding, which is in contrast with theory. The evidence presented here suggests this difference does not...

The academic debate over the deterrent effect of capital punishment has intensified again with a major policy outcome at stake. About two dozen empirical studies have recently emerged that explore the issue. Donohue and Wolfers (2005) claim to have examined the recent studies and shown the...

"Starting in the mid-1990s, the U.S. petroleum industry experienced a wave of mergers, several of them between large petroleum companies that were previously competitors. Using an econometric analysis of terminal city-specific data, this study finds that the majority of the mergers led to higher...

Does capital punishment deter capital crimes? We use panel data covering the fifty states duringthe period 1960-2000 period to examine the issue. Our study is novel in four ways. First, we estimate the moratorium's full effect by using both pre- and postmoratorium evidence. Second, we exploit...

Although linearly interpolated series are often used in economics, little has been done to examine the effects of interpolation on time series properties and on statistical inference. We show that linear interpolation of a trend tationary series superimposes a ‘periodic’ structure on the...

In a classical article, Granger (1966) argued that the levels of most economic time series have spectra that exhibit a smooth declining shape with considerable power at very low frequencies. He termed it "the typical spectral shape of an economic variable." Granger's assertion has not been...

A survey of several economic journals reveals that very often the Durbin-Watson and the portmanteau (Box-Pierce or Ljung-Box) tests are inappropriately applied to linear models with lagged dependent variables and exogenous regressors. Sampling experiments indicate that the Durbin-Watson performs...

A model of interbank rivalry is developed and tested in the context of a one period duopolistic game with stochastic variability in deposit and loan demand. A procedure involving two specification tests is used to examine model implications. Results confirm that banks change their lending rates...