This paper addresses three issues. First, why did market competition emerge in the U.S. health care system? Second, once free of regulatory constraints, how is the structure of the medical care system likely to evolve? Three, what are the implications of market competition for the public as well...

The authors propose a robust transformation linear mixed-effects model for longitudinal continuous proportional data when some of the subjects exhibit outlying trajectories over time. It becomes troublesome when including or excluding such subjects in the data analysis results in different...

The identification and estimation of a semiparametric simultaneous equation model with selectivity have been considered. The identification of structural parameters from reduced form parameters in the semiparametric model requires stronger conditions than the usual rank condition in the...

This paper reviews recent work on macroeconomic management with varying organization of wage/price bargaining and degrees of credible monetary conservatism. The emerging literature synthesizes and extends theory and empirics on central bank independence (CBI) and coordinated wage/price...

Despite their widespread use as predictors of the spot price of oil, oil futures prices tend to be less accurate in the mean-squared prediction error sense than no-change forecasts. This result is driven by the variability of the futures price about the spot price, as captured by the oil futures...

We show that the effects of overfitting and underfitting a vector autoregressive (VAR) model are strongly asymmetric for VAR summary statistics involving higher-order dynamics (such as impulse response functions, variance decompositions, or long-run forecasts) . Underfit models often...

Luce's Biased Choice Model has never had a serious competitor as a model of identification data. Even when it has provided a poor model of such data, other models have done even less well. Two alternative models are presented and the three are fit to a published data set. One alternative model...

In this paper, we define dynamic and static factors and distinguish between the dynamic and static structure of asset excess returns. We examine the value-weighted market portfolio as a dynamic factor and propose an intuitively appealing procedure to search for more dynamic factors. We find...

We propose a Bayesian framework in which the uncertainty about the half-life of deviations from purchasing power parity can be quantified. Based on the responses to a survey study, we propose a prior probability distribution for the half-life under the recent float intended to capture widely...

The problem considered is sequential estimation of the mean θ of a one-parameter exponential family of distributions with squared error loss for estimation error and a cost c 0 for each of an i.i.d. sequence of potential observations X 1 , X 2 ,...A Bayesian approach is adopted, and natural...