Non-Gaussian processes of Ornsetin-Uhlenbeck type, or OU processes for short, offer the possibility of capturing important distributional deviations from Gaussianity and for flexible modeling of dependence structure. This paper develops this potential, drawing on and extending powerful results...

A new game theoretic analysis of finite horizon, complete information bargaining is advanced. The extensive form reflects an attempt to model unstructured negotiations, in which the negotiants can gain no artificial advantage from the details of the bargaining protocol. Conditions are identified...

This paper, forthcoming in Journal of Economic Surveys, provides an elementary non-technical, survey of auction theory, by introducing and describing some of the critical papers in the subject. (The most important of these are reproduced in a companion book, The Economic Theory of Auctions, Paul...

Cobb Douglas production function parameters are not identified from cross-section variation when inputs are perfectly flexible and chosen optimally, and input prices are common to all firms. We consider the role of adjustment costs for inputs in identifying these parameters in this context. The...

The value of selecting the best forecasting model as the basis for empirical economic policy analysis is questioned. When no model coincides with the data generation process, non-causal statistical devices may provide the best available forecasts: examples from recent work include intercept...

Asymptotic analyses of unit root tests in autoregressive time series are usually based on the assumptions that the number of unit roots is known and that the remaining characteristic roots are stable. The last assumption seems not to be necessary. This is stated more precisely for two examples.

This paper considers the extension of Ellison's (2000) "Radius-Modified Coradius" Theorem from the uniform-mutations case to a general stochastic setting. A modified theorem is presented, with a crucial role now played by the most probable evolutionary paths between states. The form of such...