In econometrics, most null hypotheses are composite, dividing the parameters into parameters of interest and nuisance parameters. The domain of the nuisance parameters can influence the size-corrected critical value and hence the power of a test. We show that the domain of the nuisance...

Models of job creation and destruction emphasize the endogeneity of the decision to start up or kill off a job. Faced with random and largely idiosyncratic shocks to productivity, firms adopt a reservation strategy for keeping a job in existence. This reservation productivity depends upon the...

Much empirical research in the social sciences is concerned with estimating conditional mean functions. The most frequently used estimation methods assume that the conditional mean function is known up to a set of constant parameters that can be estimated from data. Such methods are called...