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— In this paper the authors derive a new class of finite-dimensional recursive filters for linear dynamical systems. The Kalman filter is a special case of their general filter. Apart from being of mathematical interest, these new finite-dimensional filters can be used with the expectation maximization (EM) algorithm to yield maximum likelihood estimates of(More)
By analogy with the theory of Backward Stochastic Differential Equations , we define Backward Stochastic Difference Equations on spaces related to discrete time, finite state processes. This paper considers properties of these processes as constructions in their own right, not as approximations to the continuous case. We establish the existence and(More)
and the EAERE meetings in Budapest for helpful comments and discussions, and Jakob Svensson for some of the data. This paper was started while Fredriksson visited the Department of Economics, University of Gothenburg, and he thanks the department for its hospitality. Financial support from the Malmsten Foundation and the University of Gothenburg Jubilee(More)
Acknowledgements We thank seminar participants at the EAERE 2004 Conference in Budapest for helpful comments and gratefully acknowledge the support of ESRC grant number RES-000-22-0016 and Leverhulme Trust grant number F/00094/AG. Abstract: This paper examines and quantifies the complex linkages between industrial activity, environmental regulations and air(More)
—We consider the problem of fixed-interval smoothing of a continuous-time partially observed nonlinear stochastic dynamical system. Existing results for such smoothers require the use of two-sided stochastic calculus. The main contribution of this paper is to present a robust formulation of the smoothing equations. Under this robust formulation, the(More)
In this paper we investigate the relationship between economic growth and industrial pollution emissions in China using data for 112 major cities between 2001 and 2004. Using disaggregated data we separate FDI inflows from Hong Kong, Macao and Taiwan from those of other foreign economies. We examine four industrial water pollution indicators (wastewater,(More)
We investigate occupational attainment as well as estimating earnings differentials for non-white migrants and non-white natives including occupational effects. We control for the occupational selection of immigrants and compare across native and immigrant groups. Relative to white natives, we find no evidence of an ethnic pay disadvantage for white and(More)