Ebook: Studies in Applied Econometrics

This book reports new developments in applied econometrics. All papers originated in two international workshops that were organized in the University of Munich on July 6-7, 1989, and on January 11 - 12, 1990. Financial support for these conferences by the University of Munich and the Thyssen Foundation is gratefully acknowledged. Since then all papers were substantially revised and updated. We wish to thank all authors for their patience with the revisions and Thomas Bauer, Lucie Merkle and Gisela Loos for editorial help. The ftrst section of the book collects contributions that address new "Methodological Developments". Two of them deal with problems in microeconometrics, the other two consider multi-equation systems. Martin Kukuk and Gerd Ronning treat "Ordinal Variables in Microeconometric Models". They especially deal with the case of limited-dependent variable models where some exogenous variables are either measured on an interval scale or a nominal scale. They discuss and compare two methods to deal with the problem. In his paper on "Goodness of Fit in Qualitative Choice Models: Review and Evaluation", Klaus F. Zimmermann investigates methods to summarize the predictive quality of models that deal with discrete alternatives. For these models, a widely accepted measure for evaluation like the R2, as in the case of ordinary least squares, does not exist. The paper summarizes the literature and suggests reasonable choices for evaluation on the basis of large-scale Monte Carlo investigations.

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This book shows the use of new econometric tools to analyse economic problems and shows possible ways to promote the theory of such new tools. Itis a collection of papers that were presented during two international workshops at the University of Munich. These papers report on new developments in applied econometrics. The book's first part collectscontributions that address new methodological developments, in particular inmicroeconometrics and in multi-equation systems: ordinal variables in microeconometric models, goodness of fit in qualitative choice models, causation in VAR models, and recursive models are the topics dealt with. Part two discusses economic applications of new econometric methods. The topics here are: search models for unemployment, pricing behavior of manufacturing firms, optimal adjustment behavior of firms, and real interest rates.

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This book shows the use of new econometric tools to analyse economic problems and shows possible ways to promote the theory of such new tools. Itis a collection of papers that were presented during two international workshops at the University of Munich. These papers report on new developments in applied econometrics. The book's first part collectscontributions that address new methodological developments, in particular inmicroeconometrics and in multi-equation systems: ordinal variables in microeconometric models, goodness of fit in qualitative choice models, causation in VAR models, and recursive models are the topics dealt with. Part two discusses economic applications of new econometric methods. The topics here are: search models for unemployment, pricing behavior of manufacturing firms, optimal adjustment behavior of firms, and real interest rates.
Content:
Front Matter....Pages i-v
Introduction....Pages 1-3
Front Matter....Pages 5-5
Ordinal Variables in Microeconometric Models....Pages 7-24
Goodness of Fit in Qualitative Choice Models: Review and Evaluation....Pages 25-74
Testing for Causation Between Two Variables in Higher-Dimensional VAR Models....Pages 75-91
The Reduced Form of Recursive Models: Asymptotic Properties....Pages 92-115
Front Matter....Pages 117-117
Testing the Stationary Search Model....Pages 119-149
Markup Differentials, Cost Flexibility, and Capacity Utilization in West-German Manufacturing....Pages 150-181
Empirical Analysis of Optimal Firm Behaviour: Asymmetric Adjustment in Labour and Capital Demand in the Manufacturing Sector in the Netherlands and the U.K.....Pages 182-213
Are Real Interest Rates Stable? An International Comparison....Pages 214-238

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This book shows the use of new econometric tools to analyse economic problems and shows possible ways to promote the theory of such new tools. Itis a collection of papers that were presented during two international workshops at the University of Munich. These papers report on new developments in applied econometrics. The book's first part collectscontributions that address new methodological developments, in particular inmicroeconometrics and in multi-equation systems: ordinal variables in microeconometric models, goodness of fit in qualitative choice models, causation in VAR models, and recursive models are the topics dealt with. Part two discusses economic applications of new econometric methods. The topics here are: search models for unemployment, pricing behavior of manufacturing firms, optimal adjustment behavior of firms, and real interest rates.
Content:
Front Matter....Pages i-v
Introduction....Pages 1-3
Front Matter....Pages 5-5
Ordinal Variables in Microeconometric Models....Pages 7-24
Goodness of Fit in Qualitative Choice Models: Review and Evaluation....Pages 25-74
Testing for Causation Between Two Variables in Higher-Dimensional VAR Models....Pages 75-91
The Reduced Form of Recursive Models: Asymptotic Properties....Pages 92-115
Front Matter....Pages 117-117
Testing the Stationary Search Model....Pages 119-149
Markup Differentials, Cost Flexibility, and Capacity Utilization in West-German Manufacturing....Pages 150-181
Empirical Analysis of Optimal Firm Behaviour: Asymmetric Adjustment in Labour and Capital Demand in the Manufacturing Sector in the Netherlands and the U.K.....Pages 182-213
Are Real Interest Rates Stable? An International Comparison....Pages 214-238
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