The Vuong test for non-nested models is being widely used as a test of zero-inflation. We
show that such use is erroneous. We see that this stems from a misunderstanding of what is …

The proportion of zeros in event-count processes may be inflated by an additional
mechanism by which zeros are created. This has given rise to statistical models that …

Discrete data in the form of counts often exhibit extra variation that cannot be explained by a
simple model, such as the binomial or the Poisson. Also, these data sometimes show more …

In this paper we use a new approach to throw light on the old question of the super-neutrality
of money. Recent theoretical results suggest a threshold model instead of super-neutrality …

In the three decades since statistical procedures were first developed to test non-nested (or
separate) families of hypotheses, a burgeoning literature has developed for testing a null …

This paper provides a critique of zero lower bound (ZLB) economics which has become the
new orthodoxy for explaining stagnation. ZLB economics is an extension of pre-Keynesian …

This chapter focuses on the hypotheses testing problem when the hypotheses or models
under consideration are “nonnested” or belong to “separate” families of distributions, in the …

Does the deviation of unemployment from some natural rate provide a robust and useful way
to predict changes in the inflation rate? Can economists explain why the NAIRU changes …

In recent years there has been a great deal of interest in proposals to use nonstandard
indicator variables as a guide to the conduct of monetary policy. By nonstandard indicators I …

When this next article first appeared, Cox's test of non-nested hypotheses was well known,
but, perhaps surprisingly, a precise statement of conditions under which it possessed the …