This paper models an agent in a multi-period setting who does not update according to Bayes. Rule, and who is self-aware and anticipates her updating behavior when formulating plans. Choice-theoretic axiomatic foundations are provided. Then the model is specialized axiomatically to capture...

This paper reports on the progress made by the literature about economic growth in answering the question "Why do Growth Rates Differ? " It reviews that we currently know about the mechanics of growth miracles and poverty traps, as well as the tentative policy advice that these mechanics suggest.

Testing when a nuisance parameter is identified only under the alternative is problematic because the Likelihood Ratio test converges to a nonstandard distribution that may depend on unknown parameters. Examples include testing parameter stability in Structural Change and Threshold models. Our...