Introduction Different types of data are generally available for empirical analysis, namely, time series, cross section, and panel. A data set containing observations on a single phenomenon observed over multiple time periods is called time series (e.g., GDP for several quarters or years). In time series data, both the values and the ordering of the data points have meaning. In cross-section da...

In this lecture I want to briefly describe some techniques for evaluating dynamic econometric models like the models for gasoline demand you have been estimating. Until now, we have implicitly assumed that these models satisfied the classical assumptions of the Gaussian linear model. In particular, we have assumed that the error sequences {ut} were iid and approximately Gaussian, thus justifyin...

This paper seeks to answer two questions about executive compensation. How important is hidden information relative to moral hazard, and how biased are empirical measures of moral hazard in econometric models that do not account for hidden information? An analytical stage of this paper exploit restrictions from the theory of optimal contracting to identify hidden information and di¤erentiate it...