This article analyzes the main existing theories on income and population city growth: the existence of increasing returns to scale, the importance of locational fundamentals, and random growth. To do this we develop a nonlinearity test that is implemented to a dataset on urban, climatological...

Backtesting methods are statistical tests designed to uncover value-at-risk (VaR) models not capable of reporting the correct unconditional coverage probability or filtering the serial dependence in the data. We show in this paper that these methods are subject to the presence of model risk...

This article proposes nonparametric consistent tests of conditional stochastic dominance of arbitrary order in a dynamic setting. The novelty of these tests lies in the nonparametric manner of incorporating the information set. The test allows for general forms of unknown serial and mutual...