Bala V. Balachandran, Ram T. S. Ramakrishnan, Internal Control and External Auditing for Incentive Compensation Schedules, Journal of Accounting Research, Vol. 18, Studies on Economic Consequences of Financial and Managerial Accounting: Effects on Corporate Incentives and Decisions (1980), pp. 140-171
Bala V. Balachandran, Ram T. S. Ramakrishnan, [Discussion of Internal Control and External Auditing for Incentive Compensation Schedules]: A Reply, Journal of Accounting Research, Vol. 18, Studies on Economic Consequences of Financial and Managerial Accounting: Effects on Corporate Incentives and Decisions (1980), pp. 182-183
This paper develops a test of the rational expectations hypothesis advanced by Muth [18]. The framework considered here allows for multiperiod expectations of several endogenous variables, with or without lagged exogenous variables. In conventional (linear) models, the hypothesis implies that the expectations are linear in certain relevant variables, and restricts the coefficients of these variables to be certain functions of the parameters in the imbedding model. The test is developed as a test of the validity of these restrictions. The paper also treats the estimation problem in some details, under the alternative hypothesis which is taken as simply the negation of the rational expectations hypothesis.
Events by Grunberg and Modigliani [3]. Economic forecasts are made to be used, and decisions based on them may affect their ultimate realization. Grunberg and Modigliani explored this problem in a model in which future aggregate supply was influenced by current decisions based on the predicted future price. They applied the Brouwer fixed point theorem to show that if the future equilibrium price is a bounded continuous function of its currently predicted value, a exists. In [8] this result was placed in a temporary equilibrium context and the notation of a correct prediction was extended to include probabilistic predictions based on estimation procedures. Again, a fixed point theorem was applied to show that the causal influence of a forecast does not always invalidate it. Although this result is a reassuring and necessary first step, the analysis is confined to a single realization of the exogeneous variables. Thus a forecast is a single point or probability distribution rather than a function or conditional distribution whose domain is the space of observable variables. Of course, if the complete exogenous specification of the economy is observable, this is no restriction since the theorems could be applied separately to each realization. However, it is more likely that the space of observable variables contains a mixture of exogenous and endogenous variables without containing the complete set of either. Then if the exogenous variables are generated stochastically, the results of the above mentioned papers do not guarantee the existence of a statistically forecasting procedure. What is needed are general equilibrium versions of the results in [10], where, in particular, the statistically forecast of a future price is derived as a function of current and past prices. It would seem natural to approach this as a fixed point problem in the space of joint distributions of the observable variables and the
[This paper addresses the problem of estimating unknown regression coefficients when erroneous data and other violations of the standard assumptions are possible. An estimator which has a limited sensitivity to these departures from the assumptions is presented, and some of its properties are derived. This estimator is shown to have a certain efficiency property relative to other estimators with the same sensitivity to erroneous data.]
T. S. Breusch, A. R. Pagan; The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics, The Review of Economic Studies, Volume 47,
Journal Article Target Controllability Get access Alfred L. Norman, Alfred L. Norman Board of Governors of the Federal Reserve System, Washington, and University of Texas at Austin Search for other works by this author on: Oxford Academic Google Scholar Woo S. Jung Woo S. Jung Vanderbilt University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 47, Issue 2, January 1980, Pages 451–457, https://doi.org/10.2307/2297004 Published: 01 January 1980 Article history Received: 01 January 1977 Accepted: 01 November 1978 Published: 01 January 1980
Journal Article Disaggregated Demand Analysis: The Estimation of a Class of Non-linear Demand Systems Get access S. E. Pudney S. E. Pudney London School of Economics Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 47, Issue 5, October 1980, Pages 875–892, https://doi.org/10.2307/2296919 Published: 01 October 1980 Article history Received: 01 September 1978 Accepted: 01 March 1980 Published: 01 October 1980