We introduce the concept of the bootstrap discrepancy, which measures the difference in rejection probabilities between a bootstrap test based on a given test statistic and that of a (usually infeasible) test based on the true distribution of the statistic. We show that the bootstrap discrepancy...

This paper examines the properties of stationary-state general equilibrium in a monocentric city with durable housing. On the demand side, identical households choose location, housing quality and quantity, and other goods. On the supply side, developers choose the structural density and time...

We perform an extensive series of Monte Carlo experiments to compare the performance of two variants of the "Jackknife Instrumental Variables Estimator," or JIVE, with that of the more familiar 2SLS and LIML estimators. We find no evidence to suggest that JIVE should ever be used. It is always...

This paper provides a simple explanation for the observed positive relationship between savings rates and inflation rates in modern Western economies. We argue that this relationship arises because, in times of inflation, measured income and savings overestimate the corresponding real...

This paper discusses statistical techniques to test the validity of a possibly nonlinear and multivariate regression model, using the information by estimating one or more alternatives on the same data set. The procedures suggested by Pesaran and Deaton (1978) are not the only ones which may...

We study several tests for the coefficient of the single right-hand-side endogenous variable in a linear equation estimated by instrumental variables. We show that all the test statistics--Student's t, Anderson-Rubin, Kleibergen's K, and likelihood ratio (LR)--can be written as functions of six...

We investigate how owners of durable goods respond to a once-for-all unanticipated shock in a housing market that was in a stationary state prior to, and after the shock. We determine the circumstances under which the landlord will: 1) abandon his building immediately; 2) run down his building...

The first note treats the transition from a barter economy to a monetary one from the viewpoint of the theory of clubs. The second note demonstrates the possibility that in general equilibrium the use of a less costly means of exchange man not be beneficial to every agent. The third note shows...

This paper develops an extremely general procedure for performing a wide variety of model specification tests by running artificial linear regressions. Inference may then be based either on a Lagrange Multiplier statistic from the procedure, or on conventional asymptotic t or F tests based on...

Associated with every popular nonlinear estimation method is at least one "artificial" linear regression. We define an artificial regression in terms of three conditions that it must satisfy. Then we show how artificial regressions can be useful for numerical optimization, testing hypotheses,...