A unified method to detect and handle innovational and additive outliers, and permanent and transient level changes has been presented by R.S. Tsay, N.S. Balke has found that the presence of level changes may lead to misidentification and loss of test-power, and suggests augmenting Tsay's...

A common Nordic power market will reduce total CO2 emissions in the Nordic countries as compared to a situation of autarky and, thus, reduce the aggregate cost of complying to strict national CO2 emission targets. A common market for CO2 emissions permits may reduce the aggregate cost further,...

We formulate a econometric framework for studying treatment effects on discrete outcomes when the treatment effects are heterogeneous and the unobserved heterogeneity is given by a factor structure. Within this framework, we show how to define and semiparametrically estimate the average...

We apply the stochastic evolutionary approach of equilibrium selection to macroeconomic models in which a complementarity at the macro level is present. These models often exhibit multile Pareto-ranked Nash equilibria , and the best response-correspondence of an individual increases with a...

We consider repeated interaction among several producers of a homogeneous, divisible good, traded at a common market. Demand is uncertain, and its law is unknown.

We consider transfers in a Stackelberg game of private provision of a public good. It turns out that the agent who is the follower in the process of making voluntary contributions to a public good may have an incentive to make monetary transfers to the Stackelberg leader even in a situation...

We examine how a merger affects wages of unionized labour and, in turn, the profitability of a merger under both Cournot and Bertrand competition. If unions are plant-specific, we find that a merger is more profitable than in a corresponding model with exogenous wages. In contrast to the...

The integration of the power markets in Norway and Sweden in 1996 significantly constrained the major power companies' ability to exercise market power within their national borders. In recent years, however margers and reciprocal acquisition of shares have reduced the number of independent...

Should the government procure equipment for its agencies or let them run their own procurement auctions? Suppose the agency has private information about product quality, but is inclined to favor local suppliers. Decentralization saves bureaucracy and "agency costs" (costs tied to truthful...

A class of non-cooperative constrained games is analysed for which the Ky Fan fuction is convex-concave. Nash equilibria of such games correspond to diagonal saddle points of the said function. This feature is exploited in designing computational algorithms for finding such equilibria.