Studies in Applied Econometrics

This book shows the use of new econometric tools to analyse economic problems and shows possible ways to promote the theory of such new tools. Itis a collection of papers that were presented during two international workshops at the University of Munich. These papers report on new developments in applied econometrics. The book's first part collectscontributions that address new methodological developments, in particular inmicroeconometrics and in multi-equation systems: ordinal variables in microeconometric models, goodness of fit in qualitative choice models, causation in VAR models, and recursive models are the topics dealt with. Part two discusses economic applications of new econometric methods. The topics here are: search models for unemployment, pricing behavior of manufacturing firms, optimal adjustment behavior of firms, and real interest rates