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We develop a methodology to estimate the transaction costs required to arbitrage among a set of products and the probability of observing binding arbitrage. The estimation is based on a switching regimes model, identified by a truncation in the error structure. We analyze its antitrust implications, and apply it to wholesale gasoline in the Northeastern United States. The main findings are: Transaction costs are below 5% of price, increasing with distance and depend on the direction of arbitrage; arbitrage probabilities fall with distance and with transaction costs. Finally, the model discriminates well between regimes, suggesting its usefulness for other applications. [ABSTRACT FROM AUTHOR]

This paper utilizes an ex post empirical approach to explain bank failures.[2] The dependent variable is constructed by classifying banks according to whether or not they failed and most of the independent variables are drawn from the banks' financial statements. However, in contrast to earlier studies, additional control variables are incorporated into the model to assess the influence that bank structure may have upon the probability of failure. While bank structure (e.g. unit versus branch bank) has been linked to failures, variables to control for structure either could not or were not included in earlier studies.[3] A clearer understanding of the role that bank structure plays in bank failures is important for the proper evaluation of proposed changes in banking regulations. The next section describes the model to be used in explaining bank failures. [ABSTRACT FROM AUTHOR]

Focuses on the distribution characteristics of disturbance term of the production functions in the U.S. Use of Chi-square goodness-of-fit in determining the normality of disturbance; Elasticity of the manufacturing industries; Forms of aggregate production functions.

The article presents information about an article that explores the functional forms and the demand for meat in the United States. The general form for estimating the demand function for meat in the United States is based on the power transformation given by economists George E.P. Box and David R. Cox. The use of power transformation in regression analysis requires a certain amount of caution in interpreting the empirical results. The elasticity of the conditional mean function differs from that given by the deterministic part alone. Depending upon viewpoint, this difference represents a bias distorting the elasticity, given by the conditional mean function, away from the elasticity that would be given by the deterministic portion of the deterministic demand function.