Lars-Erik Öller

Testing for Short Memory in a VARMA Process

We generalize the short term memory test of an ARMA model, presented in Oller (1985), to the multivariate VARMA cases. In a study on Swedish exports and OECD demand we demonstrate how the multivariate setting extends the short memory.

Becker's assortative assignments: stability and fairness

Abstract Inspired by Roth and Sotomayor [Roth, A.E., Sotomayor, M.A.O., 1990. Two-sided Matching—A Study in Game-theoretic Modeling and Analysis, Cambridge University Press, 1990] we make a deeper mathematical study of the assortative matching markets defined by Becker [Becker, G., 1981. A Treatise on the Family, Harvard University Press, 1981], finding explicit results on stability and fairness. We note that in the limit, when the size of the market tends to infinity, we obtain the continuous model of Sattinger [Sattinger, M., 1979. Differential rents and the distribution of earnings, Oxford Economic Papers, pp. 60–71] and retrieve his characterization of the core of the game in this limit case. We also find that the most egalitarian core solution for employees is the employer-optimal assignment.