We establish the relationships between certain Bayesian and classical approaches to instrumental variables regression. We determine the form of priors that lead to posteriors for structural parameters that have similar properties as classical 2SLS and LIML and in doing so provide some new...

Standard estimates of the NAIRU or natural rate of unemployment are subject to considerable uncertainty. We show in this paper that using multiple indicators to extract an estimated NAIRU cuts in half uncertainty as measured by variance. The inclusion of an Okun’s Law relation is particularly...

Using an array of unit root and structural break tests we find that the trend behavior of two air pollutants, Nitrogen Oxides (NOX) and Volatile Organic Compounds (VOCs), is substantially different. VOCs emissions are found to be trend-stationary with a break at the time the Clean Air Act of...