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A literature search shows that robust regression techniques are rarely used in applied econometrics. We present a technique based on Rousseeuw and Van Zomeren [Journal of the American Statistical Association, 85 (1990) 633–639] that removes many of the difficulties in applying such techniques to economic data. We demonstrate the value of these techniques by(More)
Can the modern economy function without a market for interestbased credit? This question has acquired some urgency in the wake of the recent Shariat Court ruling banning interest in Pakistan. Some pundits have pronounced that great harm will result from the banning of interest. Actually, such pronouncements are based on a lack of understanding of both the(More)
We estimate the impact on pilgrims of performing the Hajj pilgrimage to Mecca. Our method compares successful and unsuccessful applicants in a lottery used by Pakistan to allocate Hajj visas. Pilgrim accounts stress that the Hajj leads to a feeling of unity with fellow Muslims, but outsiders have sometimes feared that this could be accompanied by antipathy(More)
This note argues that the competitive paradigm of neoclassical economics breaks down in the presence of constant returns to scale (CRS). With CRS, all goods can be produced at identical unit costs by all economic agents, making self-production a feasible alternative to market production. In the event, an infinite number of equilibria become possible with a(More)
  • SAIMA NAEEM, Asad Zaman, +5 authors JASIR ILYAS
  • 2015
Gender and Ultimatum in Pakistan: Revisited SAIMA NAEEM and ASAD ZAMAN Razzaque (2009) studied the role of gender in the ultimatum game by running experiments on students in various cities in Pakistan. He used standard confirmatory data analysis techniques, which work well in familiar contexts, where relevant hypotheses of interest are known in advance. Our(More)
The twentieth century has been extremely unusual in that economic growth rates have been extraordinarily high. At the same time, costs of this growth have also been extremely high. These have been in the form of environmental degradation, depletion of planetary resources and species, climate change, and adverse social change. Since many of the effects of(More)
The large majority of the criteria for model selection are functions of the ̂ 2, the usual variance estimate for a regression model. The validity of the usual variance estimate depends on some assumptions, most critically the validity of the model being estimated. This is often violated in model selection contexts, where model search takes place over(More)
We suggest a procedure for model update, based on detection of structural breaks at unknown change-points. The procedure makes use of the SupF test introduced by Andrews (1993). We apply this procedure for modelling the common stock index returns in the Ýstanbul Stock Exchange for the 11 year period of 1989 1999. The underlying model consists simply of a(More)