In this paper, a shrinkage estimator for the population mean is proposed under known quadratic loss functions with unknown covariance matrices. The new estimator is non-parametric in the sense that it does not assume a specific parametric distribution for the data and it does not require the...

How important is financial development for economic development? A costly state verification model of financial intermediation is presented to address this question. The model is calibrated to match facts about the U.S. economy, such as the intermediation spreads and the firm-size distributions...

In this work, we redefined two important statistics, the CLRT test [Z. Bai, D. Jiang, J. Yao, S. Zheng, Corrections to LRT on large-dimensional covariance matrix by RMT, The Annals of Statistics 37 (6B) (2009) 3822–3840] and the LW test [O. Ledoit, M. Wolf, Some hypothesis tests for the...

How important is financial development for economic development? A costly state veriÂ…cation model of financial intermediation is presented to address this question. The model is calibrated to match facts about the U.S. economy, such as the intermediation spreads and the firm-size...

Using the technology of spectral selectivity to integrate different solar power generators in a hybrid system is a feasible way to improve the optical-electric efficiency. This paper presents an 82-layer broadband optical interference thin-film filter matching with crystalline silicon...

To address how technological progress in financial intermediation affects the economy, a costly-state verification framework is embedded into the standard growth model. The framework has two novel ingredients. First, firms differ in the risk/return combinations that they offer. Second, the...

We construct a model of the credit market where financial contracting is subject to costly state verification and moral hazard. The economy's aggregate activity and its equilibrium lending mechanism are determined jointly. We analyze how changes in the model's exogenous variables, including the...

We study a dynamic principal-agent relationship in which the agent receives a stochastic outside opportunity/offer each period and he cannot commit to not leaving the ongoing relationship.Termination, while costly, allows the principal to go to an external market to hire a new agent. We treat...