The primary aim of the paper is to consider the problems and issues raised when the data exhibit time heterogeneity in the context of linear models. Ignoring time heterogeneity will undermine the reliability of inference and will give rise to untrustworthy evidence. Accounting for it using trend...

The limited availability of methodologies that evaluate departures from market-clearing discourages the application of estimation methods that allow them. Nevertheless, shortages and surpluses appear in a plethora of markets not only under exceptional but also under normal circumstances. In this...

In designing any causal study, steps must be taken to address both internal and external threats to its validity. Researchers tend to focus primarily on dealing with threats to internal validity. However, once they have conducted an internally valid analysis, that analysis yields an established...

Log-linear and log-log regressions are one of the most used statistical models. However, handling zeros in the dependent and independent variable has remained obscure despite the prevalence of the situation. In this paper, we discuss how to deal with this issue. We show that using Pseudo-Poisson...

I document large variation in empirical methodology in corporate finance regressions in top finance journals. Although methodological variation allows for customization of empirical tests to fit specific theories, it can also enable excessive reporting of statistically significant results. For...

Reporting the economic significance of findings in empirical corporate finance has become increasingly common, but a review of the literature from 2000 to 2018 reveals problems with standard practice that make it difficult to judge the importance of reported results. Common problems include...

This paper compares two methods for meta-analysis: fixed-effect models and random-effects models. Both models are applied to pass-through rates of excise taxes on alcohol beverages. Using a sample of estimates from 30 primary studies, weighted means are first reported for each method and...

The purpose of this paper is to survey recent developments in granular models and machine learning models for loss reserving, and to compare the two families with a view to assessment of their potential for future development.This is best understood against the context of the evolution of these...

This research utilizes local GDP in a panel data set of 383 MSAs in the U.S. during 2012-2017 to determine whether historical methods in the academic literature to measure the economic impact of sporting events, facilities, and teams are sensitive enough to generate conclusive statistically...

In multichannel retailing, customers often use a mix of a firm's online and physical stores for their search and buy activities. We define the customer's “channel engagement” as a latent attitude or predisposition towards the firm's online and offline channels which dynamically transitions...