The aim of the paper is to present a statistical methodology for the estimation of a deterministic production function and of the derived technical efficiencies. The originality of the method lies in that it allows the introduction of exogeneous factors explaining a part of the inefficiency....

We use a bivariate VAR model to model and predict the joint evolution of short term and long term interest rates. We introduce a GARCH effect on the innovations of the model in order to account for the changing volatility of the series. We test the cointegration of the two interest rates, which...