We employ a structural threshold regression methodology to investigate the heterogeneous effects of debt on growth using public debt as a threshold variable as well as several other plausible variables. Our methodology allows us to address parameter heterogeneity that characterizes cross-country...

This paper investigates the relationship between per capita human capital investment and the fertility rate. In the first part of the article we analyze a theoretical model with endogenous birth rate in which we do not make any assumption on how fertility directly affects per capita human...

Stabilizing pollution levels in the long run is a pre-requisite for sustainable growth. We develop a neoclassical growth model with endogenous emission reduction predicting that, along optimal sustainable paths, pollution growth rates are (i) positively related to output growth (scale effect)...

This text offers a comprehensive presentation of the mathematics required to tackle problems in economic analyses. To give a better understanding of the mathematical concepts, the text follows the logic of the development of mathematics rather than that of an economics course. The only...

This text offers a comprehensive presentation of the mathematics required to tackle problems in economic analyses. To give a better understanding of the mathematical concepts, the text follows the logic of the development of mathematics rather than that of an economics course. The only...

We derive general distribution tests based on the method of maximum entropy (ME) density. The proposed tests are derived from maximizing the differential entropy subject to given moment constraints. By exploiting the equivalence between the ME and maximum likelihood (ML) estimates for the...

In this paper, we propose of a test of bivariate stochastic dominance using a generalized framework for testing inequality constraints. Unlike existing tests, this test has the advantage of utilizing the covariance structure of the estimates of the joint distribution functions. The performance...

In this paper, we propose of a test of bivariate stochastic dominance using a generalized framework for testing inequality constraints. Unlike existing tests, this test has the advantage of utilizing the covariance structure of the estimates of the joint distribution functions. The performance...

An optimal weighting scheme is proposed to construct a new index of environmental quality for different countries using an approach that relies on consistent tests for stochastic dominance efficiency. The test statistics and the estimators are computed using mixed integer programming methods....

We propose a new method to assess sovereign risk in Eurozone countries using an approach that relies on consistent tests for stochastic dominance efficiency. The test statistics and the estimators are computed using mixed integer programming methods. Our analysis is based on macroeconomic...