K e y w o r d s: patent activity, panel model, decomposition of intercept.

K e y w o r d s: Box-Cox transformation, SV model, Bayesian inference.

The bootstrap is a statistical technique used more and more widely in econometrics. While it is capable of yielding very reliable inference, some precautions should be taken in order to ensure this. Two “Golden Rules” are formulated that, if observed, help to obtain the best the bootstrap can offer. Bootstrapping always involves setting up a bootstrap data-generating process (DGP). The main typ...

There is no question that traditional mathematics courses such as algebra, geometry, and calculus contribute to the math proficiency of high school students. What is not usually recognized, however, is that math-related and applied courses such as the ones found in science and vocational education programs also appreciably increase math skills. Using a two-stage least squares model and an error...

Practitioners and academics apply a range of regional economic models for impacts assessment. These models extend from a simple economic base through to input-output and econometric models and computable general equilibrium models. All such models have strengths and weaknesses. Dimensions of which impact assessment models are often compared include level of industry detail, data availability, a...

Researchers often hold out data from the estimation of econometric models to use for external validation. In this paper we examine possible rationales for this practice. For concreteness, two examples are considered. The first example (Todd and Wolpin (2008)) is taken from the microeconometrics literature. Suppose the goal is to evaluate the impact of a monetary subsidy to low-income households...

Martin Eichenbaum is a professor of economics at Northwestern University and a senior consultant to the Federal Reserve Bank of Chicago. In this article, I offer some comments on the role of econometrics in macroeconomics. 1 These reflect a specific perspective: The role of econometrics ought to be the advancement of empirically plausible economic theory. This is a natural perspective for any e...