Moment tests of independent components

We propose simple specification tests for independent component analysis and structural vector autoregressions with non-Gaussian shocks that check the normality of a single shock and the potential cross-sectional dependence among several of them. Our tests compare the integer (product) moments of the shocks in the sample with their population counterparts. Importantly, we explicitly consider the sampling variability resulting from using shocks computed with consistent parameter estimators. We study the finite sample size of our tests in several simulation exercises and discuss some bootstrap procedures. We also show that our tests have non-negligible power against a variety of empirically plausible alternatives.

Personality Traits Across the Life Cycle: Disentangling Age, Period, and Cohort Effects

Economists increasingly recognise the importance of personality traits for socio-economic outcomes, but little is known about the stability of these traits over the life cycle. Existing empirical contributions typically focus on age patterns and disregard cohort and period influences. This paper contributes novel evidence for the separability of age, period, and cohort effects for a broad range of personality traits based on systematic specification tests for disentangling age, period and cohort influences. Our estimates document that for different cohorts, the evolution of personality traits across the life cycle follows a stable, though non-constant, age profile, while there are sizeable differences across time periods.

An Investigation into Rule of Thumb Behaviour in New Zealand

<p>In recent times, macroeconomic models have begun to describe aggregate consumer and firm behaviour by allowing some proportion to behave in a rule of thumb manner. This dissertation attempts to address two main issues that are concurrent in the literature. First I test for the proportion of aggregate behaviour that deviates from Classical consumer allocation theory and New Keynesian firm pricing theory in New Zealand. Rule of thumb consumers are assumed to consume out of current income as opposed to obeying the Permanent Income Hypothesis, while rule of thumb firms set prices in a backward looking manner. Using the GMM estimation procedure, I examine the sensitivity of estimates across a range of instrumental variables. After positive GMM specification tests I find the proportion of rule of thumb consumers is 0.21 and the proportion of backward looking price setters is 0.82. These results suggest that specifications which fail to allow for rule of thumb behaviour cannot fully reflect consumer and firm decisions. The second main issue seeks to address how these estimates compare to those estimated in a small open economy DSGE model. Monte Carlo Markov Chain (MCMC) estimation finds an estimated degree of external habit persistence of 0.9, proportion of rule of thumb consumers of 0.34, and the proportion of backward looking price setters falls to 0.7. A full range of MCMC diagnostics is subsequently computed. The diagnostic tests are largely favourable.</p>

An Investigation into Rule of Thumb Behaviour in New Zealand

<p>In recent times, macroeconomic models have begun to describe aggregate consumer and firm behaviour by allowing some proportion to behave in a rule of thumb manner. This dissertation attempts to address two main issues that are concurrent in the literature. First I test for the proportion of aggregate behaviour that deviates from Classical consumer allocation theory and New Keynesian firm pricing theory in New Zealand. Rule of thumb consumers are assumed to consume out of current income as opposed to obeying the Permanent Income Hypothesis, while rule of thumb firms set prices in a backward looking manner. Using the GMM estimation procedure, I examine the sensitivity of estimates across a range of instrumental variables. After positive GMM specification tests I find the proportion of rule of thumb consumers is 0.21 and the proportion of backward looking price setters is 0.82. These results suggest that specifications which fail to allow for rule of thumb behaviour cannot fully reflect consumer and firm decisions. The second main issue seeks to address how these estimates compare to those estimated in a small open economy DSGE model. Monte Carlo Markov Chain (MCMC) estimation finds an estimated degree of external habit persistence of 0.9, proportion of rule of thumb consumers of 0.34, and the proportion of backward looking price setters falls to 0.7. A full range of MCMC diagnostics is subsequently computed. The diagnostic tests are largely favourable.</p>

Entrepreneurship and Income Inequality: A Spatial Econometric Approach

This paper extends research on the link between entrepreneurship and income inequality by introducing spatial considerations. Following a battery of specification tests, we model the relationship between entrepreneurship and inequality using a dynamic spatial Durbin model. Using data from the 48 continental U.S. states, we obtain strong evidence that entrepreneurship within a state not only affects inequality within that state, but has cross-state effects, as well.

Analysis of the Effects of Public Expenditure on Agricultural Growth in Mali

The objective of this study is to analyze the effects of government spending on agricultural growth in Mali using data from 2000 to 2019. The lagged autoregressive model (ARDL) was used to perform the estimation. We conducted a descriptive analysis of the data from the World Bank database. Several specification tests were performed to confirm the validity of the chosen model. The results of this study show that the public expenditures have positive and significant effects on agricultural growth, except for agricultural expenditures that have negative effects. Similarly, the agricultural employability rate and fertilizer consumption also have negative effects. This implies that the government needs to review its resource allocation policy in all sectors, including the agricultural sector.

Pharmaceutico-analytical profile of Mrityunjay Rasa and evaluation of its Antibacterial activity

Background: Mrityunjay Rasa is the one of the Kharaliya Kalpana explained in Yogaratnakara in Jwara chikitsa and indicated in all types of fever. Any pathology can leads to diseases which are easily seen by fever as a clinical symptom. Bacterial infections through the skin or by any system defiantly reflect through fever and as told in classics Mrityunjay Rasa is having the capacity to eradicate all types of Jwara. Aim & Objective: The study is planned to evaluate the antibacterial activity of Mrityunjay Rasa. Material and methods: Mrityunjay rasa was prepared according to Yogratnakar at the Department of Rasashastra & Bhaishajya Kalpana. The formulation was tested for organoleptic characters, physicochemical parameters and microbial specification tests. Observation and results: Standard Mrityunjay rasa can be prepared from three Bhawana of Ardraka swarasa each for an average of 11.55 hrs. Prepared Mrityunjay rasa was Reddish in color with a specific smell and 145.57% average yield. Analytical standards for Mrityunjay rasa such as loss on drying at 105oC, total ash, acid insoluble ash, alcohol soluble extractives, water-soluble extractive, pH, Hardness, Disintegration time and particle size were 2.10%, 15.87%, 2.43%, 2.29%, 20.43 %, 8.7 (10% aqueous solution), 3, 30 minutes 20 sec and 95.41 respectively. Mrityunjay Rasa has shown a better zone of inhibition against Staphylococcus aureus. Conclusion: Analytical parameters obtained through the present study can be considered as a reference standard for Mrityunjay rasa.