We study estimation and inference in settings where the interest is in the effect of a potentially endogenous regressor on some outcome. To address the endogeneity we exploit the presence of additional variables. Like conventional instrumental variables, these variables are correlated with the endogenous regressor. However, unlike conventional instrumental variables, they also have direct effec...

One of the most widely used (and most successful) methods for pricing financial and insurance instruments under risk is the Wang transform method. In this paper, we provide a new explanation for the empirical success of Wang’s method – by providing a new simpler justification for the Wang transform. Pricing under risk: a problem. The price of most financial instruments unpredictably (randomly) ...

Islamic financial instruments have been experiencing rapid growth in the last 50 years. Despite unique motivation formulating them, namely based on Syariah law, their movement might link to those of conventional ones. This paper is devoted investigating such interactions. It does so by applying two multivariate time series models estimate various instruments, both and The are VAR (Vector Autore...