Central banks typically supply intraday and overnight reserves at very different costs. The cost of intraday reserves is very close to zero, while the cost of overnight reserves is much higher. In this paper, we discuss the different roles played by reserves intraday and overnight and review...

This paper proposes several new tests for structural change in themultivariate linear regression model. One of the most popular alternatives are Sup-Wald type tests along the lines of Bai, Lumsdaine and Stock (1998), which Bernard,Idoudi, Khalaf and Yélou (2007) show to have very large size...

The “End Racial Profiling Act of 2001” (ERPA) states that “nolaw enforcement agent or law enforcement agency shall engage in racial profiling” andmandates states to “collect detailed data on stops, searches, seizures, and arrests.” Wedevelop a stylized dynamic model of highway...

Chakraborty [Journal of Economic Theory, 2004] introduces endogenousmortality in a two period overlapping generations model by postulating thatthe probability of surviving from the first period to the second depends on taxfundedpublic health. His central result on the existence of multiple...

This paper provides a new approach to testing cointegration parameters in a singleequationcointegration environment. The novelty is in improving over the well-knownheteroscedasticity and autocorrelation consistent (HAC) robust standard errors usingfixed bandwidth (fixed-b) asymptotic theory and...

In this paper we propose tests for hypotheses regarding the parameters of the deterministictrend function of a univariate time series. The tests do not require knowledge of the form ofserial correlation in the data and they are robust to strong serial correlation. The data cancontain a unit root...