Estimation of the one sided error component in stochastic frontier models may erroneously attribute firm characteristics to inefficiency if heterogeneity is unaccounted for. However, it is not clear in general in which component of the error distribution the covariates should be included. In the...

In this paper, we study how the lack of a unique representation for the two-state Markovian arrival process (MAP <Subscript>2</Subscript>) can influence statistical estimation for the MAP <Subscript>2</Subscript>/G/1 queueing system. In particular, given two equivalent representations of the same MAP <Subscript>2</Subscript>, we find that the steady-state...</subscript></subscript></subscript>

This paper first identifies the level of cyclical systemic risks in Spain, also calibrating their impact on the solvency of the banking system, and, second, assesses the costs and benefits of the countercyclical use of capital requirements. The first part of the paper is based on an integrated...