We address the problem of estimating the difference between two probability densities. A naive approach is a two-step procedure that first estimates two densities separately and then computes their difference. However, such a two-step procedure does not necessarily work well because the first step is performed without regard to the second step and thus a small error in the first stage can cause...

Methodologies related with information theory have been increasingly used in studies in economics and management. In this paper we use Generalized Maximum Entropy as an alternative to the Ordinary Least Squares in the estimation of utility functions. We estimated linear, logarithmic and power utility functions as well as confidence intervals and in order to compare both methodologies. Results p...

A new method is proposed for estimating derivatives of a nonparametric regression function. By applying Taylor expansion technique to a derived symmetric difference sequence, we obtain a sequence of approximate linear regression representation in which the derivative is just the intercept term. Using locally weighted least squares, we estimate the derivative in the linear regression model. The ...

Heteroskedastic regression data are modelled using a parameterized variance function. This procedure is robustified using a method with high breakdown point and high efficiency, which provides a direct link between observations and the weights used in model fitting. This feature is vital for the application, the analysis of international trade data from the European Union. Heteroskedasticity is...

This paper examines the effects of managerial overconfidence on bank risk taking and investigates whether improvements in governance can help to mitigate the adverse effects of managerial overconfidence on bank risk taking by using ordinary least squares method. The sample consists of the financial institutions in G20 and Taiwan over the period of 2005-2012. The executive overconfidence is meas...

We investigate in this paper a variety of equalities for the ordinary least-squares estimators and the best linear unbiased estimators under the general linear (Gauss-Markov) model {y, Xβ, σΣ} and the restrained model {y, Xβ |Aβ = b, σΣ}.

Live coral is a key component of the Al Wajh marine reserve in the Red Sea. The management of this reserve is dependent on a sound understanding of the existing spatial distribution of live coral cover and the environmental factors influencing live coral at the landscape scale. This study uses remote-sensing techniques to develop ordinary least squares and spatially lagged autoregressive explan...