This paper focuses on finding starting-values for the estimation of Vector STAR models. Based on a Monte Carlo study, different procedures are evaluated. Their performance is assessed with respect to model fit…
We study how the exposure of fundamental and financial traders affects the futures curve of WTI oil and the market integration between WTI and Brent as measured by their price spread. To obtain a parsimonious…
Recent advances in trade theory suggest novel gains from trade liberalisation through technology adoption by expanding exporting firms. These theories rely on strict assumptions regarding the productivity…