I: Methodological Developments --; Ordinal Variables in Microeconometric Models --; Goodness of Fit in Qualitative Choice Models: Review and Evaluation --; Testing for Causation Between Two Variables in Higher-Dimensional VAR Models --; The Reduced Form of Recursive Models: Asymptotic Properties --; II: Economic Applications --; Testing the Stationary Search Model --; Markup Differentials, Cost Flexibility, and Capacity Utilization in West-German Manufacturing --; Empirical Analysis of Optimal Firm Behaviour: Asymmetric Adjustment in Labour and Capital Demand in the Manufacturing Sector in the Netherlands and the U.K. --; Are Real Interest Rates Stable? An International Comparison.
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.