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29,425
em
This paper provides an introduction to structural estimation methods for matching markets with transferable utility.
Structural Estimation of Matching Markets with Transferable Utility
2021-09-16 15:29:14
Alfred Galichon, Bernard Salanié
http://arxiv.org/abs/2109.07932v1, http://arxiv.org/pdf/2109.07932v1
econ.EM
29,133
em
In this paper, we propose a model which simulates odds distributions of pari-mutuel betting system under two hypotheses on the behavior of bettors: 1. The amount of bets increases very rapidly as the deadline for betting comes near. 2. Each bettor bets on a horse which gives the largest expectation value of the benefit...
Efficiency in Micro-Behaviors and FL Bias
2018-05-11 05:17:42
Kurihara Kazutaka, Yohei Tutiya
http://arxiv.org/abs/1805.04225v1, http://arxiv.org/pdf/1805.04225v1
econ.EM
29,931
em
This paper derives the efficiency bound for estimating the parameters of dynamic panel data models in the presence of an increasing number of incidental parameters. We study the efficiency problem by formulating the dynamic panel as a simultaneous equations system, and show that the quasi-maximum likelihood estimator (...
Efficiency of QMLE for dynamic panel data models with interactive effects
2023-12-13 06:56:34
Jushan Bai
http://arxiv.org/abs/2312.07881v1, http://arxiv.org/pdf/2312.07881v1
econ.EM
28,940
em
Endogeneity and missing data are common issues in empirical research. We investigate how both jointly affect inference on causal parameters. Conventional methods to estimate the variance, which treat the imputed data as if it was observed in the first place, are not reliable. We derive the asymptotic variance and propo...
On the Effect of Imputation on the 2SLS Variance
2019-03-26 19:42:59
Helmut Farbmacher, Alexander Kann
http://arxiv.org/abs/1903.11004v1, http://arxiv.org/pdf/1903.11004v1
econ.EM
28,947
em
We propose a model selection criterion to detect purely causal from purely noncausal models in the framework of quantile autoregressions (QAR). We also present asymptotics for the i.i.d. case with regularly varying distributed innovations in QAR. This new modelling perspective is appealing for investigating the presenc...
Identification of Noncausal Models by Quantile Autoregressions
2019-04-11 23:49:57
Alain Hecq, Li Sun
http://arxiv.org/abs/1904.05952v1, http://arxiv.org/pdf/1904.05952v1
econ.EM
28,965
em
Complex functions have multiple uses in various fields of study, so analyze their characteristics it is of extensive interest to other sciences. This work begins with a particular class of rational functions of a complex variable; over this is deduced two elementals properties concerning the residues and is proposed on...
On the residues vectors of a rational class of complex functions. Application to autoregressive processes
2019-07-12 23:46:56
Guillermo Daniel Scheidereiter, Omar Roberto Faure
http://arxiv.org/abs/1907.05949v1, http://arxiv.org/pdf/1907.05949v1
econ.EM
29,080
em
Many econometric models can be analyzed as finite mixtures. We focus on two-component mixtures and we show that they are nonparametrically point identified by a combination of an exclusion restriction and tail restrictions. Our identification analysis suggests simple closed-form estimators of the component distribution...
Inference on two component mixtures under tail restrictions
2021-02-11 22:27:47
Marc Henry, Koen Jochmans, Bernard Salanié
http://arxiv.org/abs/2102.06232v1, http://arxiv.org/pdf/2102.06232v1
econ.EM
29,093
em
This paper establishes an extended representation theorem for unit-root VARs. A specific algebraic technique is devised to recover stationarity from the solution of the model in the form of a cointegrating transformation. Closed forms of the results of interest are derived for integrated processes up to the 4-th order....
Cointegrated Solutions of Unit-Root VARs: An Extended Representation Theorem
2021-02-21 18:28:20
Mario Faliva, Maria Grazia Zoia
http://arxiv.org/abs/2102.10626v1, http://arxiv.org/pdf/2102.10626v1
econ.EM
29,015
em
The randomization inference literature studying randomized controlled trials (RCTs) assumes that units' potential outcomes are deterministic. This assumption is unlikely to hold, as stochastic shocks may take place during the experiment. In this paper, we consider the case of an RCT with individual-level treatment assi...
Clustering and External Validity in Randomized Controlled Trials
2019-12-02 22:30:25
Antoine Deeb, Clément de Chaisemartin
http://arxiv.org/abs/1912.01052v7, http://arxiv.org/pdf/1912.01052v7
econ.EM
28,777
em
This article reviews recent advances in fixed effect estimation of panel data models for long panels, where the number of time periods is relatively large. We focus on semiparametric models with unobserved individual and time effects, where the distribution of the outcome variable conditional on covariates and unobserv...
Fixed Effect Estimation of Large T Panel Data Models
2017-09-26 15:46:13
Iván Fernández-Val, Martin Weidner
http://arxiv.org/abs/1709.08980v2, http://arxiv.org/pdf/1709.08980v2
econ.EM
28,778
em
This paper considers the identification of treatment effects on conditional transition probabilities. We show that even under random assignment only the instantaneous average treatment effect is point identified. Since treated and control units drop out at different rates, randomization only ensures the comparability o...
Bounds On Treatment Effects On Transitions
2017-09-26 15:46:40
Johan Vikström, Geert Ridder, Martin Weidner
http://arxiv.org/abs/1709.08981v1, http://arxiv.org/pdf/1709.08981v1
econ.EM
28,779
em
We propose an inference procedure for estimators defined by mathematical programming problems, focusing on the important special cases of linear programming (LP) and quadratic programming (QP). In these settings, the coefficients in both the objective function and the constraints of the mathematical programming problem...
Inference on Estimators defined by Mathematical Programming
2017-09-26 19:24:52
Yu-Wei Hsieh, Xiaoxia Shi, Matthew Shum
http://arxiv.org/abs/1709.09115v1, http://arxiv.org/pdf/1709.09115v1
econ.EM
28,780
em
We analyze the empirical content of the Roy model, stripped down to its essential features, namely sector specific unobserved heterogeneity and self-selection on the basis of potential outcomes. We characterize sharp bounds on the joint distribution of potential outcomes and testable implications of the Roy self-select...
Sharp bounds and testability of a Roy model of STEM major choices
2017-09-27 02:25:35
Ismael Mourifie, Marc Henry, Romuald Meango
http://arxiv.org/abs/1709.09284v2, http://arxiv.org/pdf/1709.09284v2
econ.EM
28,781
em
The ongoing net neutrality debate has generated a lot of heated discussions on whether or not monetary interactions should be regulated between content and access providers. Among the several topics discussed, `differential pricing' has recently received attention due to `zero-rating' platforms proposed by some service...
Zero-rating of Content and its Effect on the Quality of Service in the Internet
2017-09-27 07:51:32
Manjesh K. Hanawal, Fehmina Malik, Yezekael Hayel
http://arxiv.org/abs/1709.09334v2, http://arxiv.org/pdf/1709.09334v2
econ.EM
28,782
em
The uncertainty and robustness of Computable General Equilibrium models can be assessed by conducting a Systematic Sensitivity Analysis. Different methods have been used in the literature for SSA of CGE models such as Gaussian Quadrature and Monte Carlo methods. This paper explores the use of Quasi-random Monte Carlo m...
Quasi-random Monte Carlo application in CGE systematic sensitivity analysis
2017-09-28 01:54:30
Theodoros Chatzivasileiadis
http://arxiv.org/abs/1709.09755v1, http://arxiv.org/pdf/1709.09755v1
econ.EM
28,783
em
We propose a method of estimating the linear-in-means model of peer effects in which the peer group, defined by a social network, is endogenous in the outcome equation for peer effects. Endogeneity is due to unobservable individual characteristics that influence both link formation in the network and the outcome of int...
Estimation of Peer Effects in Endogenous Social Networks: Control Function Approach
2017-09-28 18:41:48
Ida Johnsson, Hyungsik Roger Moon
http://arxiv.org/abs/1709.10024v3, http://arxiv.org/pdf/1709.10024v3
econ.EM
28,784
em
This paper considers the problem of forecasting a collection of short time series using cross sectional information in panel data. We construct point predictors using Tweedie's formula for the posterior mean of heterogeneous coefficients under a correlated random effects distribution. This formula utilizes cross-sectio...
Forecasting with Dynamic Panel Data Models
2017-09-29 01:46:48
Laura Liu, Hyungsik Roger Moon, Frank Schorfheide
http://arxiv.org/abs/1709.10193v1, http://arxiv.org/pdf/1709.10193v1
econ.EM
28,785
em
There is a fast growing literature that set-identifies structural vector autoregressions (SVARs) by imposing sign restrictions on the responses of a subset of the endogenous variables to a particular structural shock (sign-restricted SVARs). Most methods that have been used to construct pointwise coverage bands for imp...
Inference for VARs Identified with Sign Restrictions
2017-09-29 02:25:13
Eleonora Granziera, Hyungsik Roger Moon, Frank Schorfheide
http://arxiv.org/abs/1709.10196v2, http://arxiv.org/pdf/1709.10196v2
econ.EM
28,786
em
We systematically investigate the effect heterogeneity of job search programmes for unemployed workers. To investigate possibly heterogeneous employment effects, we combine non-experimental causal empirical models with Lasso-type estimators. The empirical analyses are based on rich administrative data from Swiss social...
Heterogeneous Employment Effects of Job Search Programmes: A Machine Learning Approach
2017-09-29 11:21:08
Michael Knaus, Michael Lechner, Anthony Strittmatter
http://dx.doi.org/10.3368/jhr.57.2.0718-9615R1, http://arxiv.org/abs/1709.10279v2, http://arxiv.org/pdf/1709.10279v2
econ.EM
28,787
em
Dynamic contracts with multiple agents is a classical decentralized decision-making problem with asymmetric information. In this paper, we extend the single-agent dynamic incentive contract model in continuous-time to a multi-agent scheme in finite horizon and allow the terminal reward to be dependent on the history of...
A Note on the Multi-Agent Contracts in Continuous Time
2017-10-01 20:07:08
Qi Luo, Romesh Saigal
http://arxiv.org/abs/1710.00377v2, http://arxiv.org/pdf/1710.00377v2
econ.EM
28,788
em
This paper presents a new estimator of the intercept of a linear regression model in cases where the outcome varaible is observed subject to a selection rule. The intercept is often in this context of inherent interest; for example, in a program evaluation context, the difference between the intercepts in outcome equat...
Rate-Optimal Estimation of the Intercept in a Semiparametric Sample-Selection Model
2017-10-04 03:02:22
Chuan Goh
http://arxiv.org/abs/1710.01423v3, http://arxiv.org/pdf/1710.01423v3
econ.EM
28,789
em
Gale, Kuhn and Tucker (1950) introduced two ways to reduce a zero-sum game by packaging some strategies with respect to a probability distribution on them. In terms of value, they gave conditions for a desirable reduction. We show that a probability distribution for a desirable reduction relies on optimal strategies in...
A Note on Gale, Kuhn, and Tucker's Reductions of Zero-Sum Games
2017-10-06 12:45:42
Shuige Liu
http://arxiv.org/abs/1710.02326v1, http://arxiv.org/pdf/1710.02326v1
econ.EM
28,790
em
This study proposes a simple technique for propensity score matching for multiple treatment levels under the strong unconfoundedness assumption with the help of the Aitchison distance proposed in the field of compositional data analysis (CODA).
Propensity score matching for multiple treatment levels: A CODA-based contribution
2017-10-24 03:27:47
Hajime Seya, Takahiro Yoshida
http://arxiv.org/abs/1710.08558v1, http://arxiv.org/pdf/1710.08558v1
econ.EM
28,791
em
We consider an index model of dyadic link formation with a homophily effect index and a degree heterogeneity index. We provide nonparametric identification results in a single large network setting for the potentially nonparametric homophily effect function, the realizations of unobserved individual fixed effects and t...
Nonparametric Identification in Index Models of Link Formation
2017-10-30 23:32:12
Wayne Yuan Gao
http://arxiv.org/abs/1710.11230v5, http://arxiv.org/pdf/1710.11230v5
econ.EM
28,792
em
Web search data are a valuable source of business and economic information. Previous studies have utilized Google Trends web search data for economic forecasting. We expand this work by providing algorithms to combine and aggregate search volume data, so that the resulting data is both consistent over time and consiste...
Aggregating Google Trends: Multivariate Testing and Analysis
2017-12-08 19:18:10
Stephen L. France, Yuying Shi
http://arxiv.org/abs/1712.03152v2, http://arxiv.org/pdf/1712.03152v2
econ.EM
28,793
em
We propose a new inferential methodology for dynamic economies that is robust to misspecification of the mechanism generating frictions. Economies with frictions are treated as perturbations of a frictionless economy that are consistent with a variety of mechanisms. We derive a representation for the law of motion for ...
Set Identified Dynamic Economies and Robustness to Misspecification
2017-12-11 11:41:11
Andreas Tryphonides
http://arxiv.org/abs/1712.03675v2, http://arxiv.org/pdf/1712.03675v2
econ.EM
28,794
em
This paper defines the class of $\mathcal{H}$-valued autoregressive (AR) processes with a unit root of finite type, where $\mathcal{H}$ is an infinite dimensional separable Hilbert space, and derives a generalization of the Granger-Johansen Representation Theorem valid for any integration order $d=1,2,\dots$. An existe...
Cointegration in functional autoregressive processes
2017-12-20 18:23:20
Massimo Franchi, Paolo Paruolo
http://dx.doi.org/10.1017/S0266466619000306, http://arxiv.org/abs/1712.07522v2, http://arxiv.org/pdf/1712.07522v2
econ.EM
28,795
em
High-dimensional linear models with endogenous variables play an increasingly important role in recent econometric literature. In this work we allow for models with many endogenous variables and many instrument variables to achieve identification. Because of the high-dimensionality in the second stage, constructing hon...
Simultaneous Confidence Intervals for High-dimensional Linear Models with Many Endogenous Variables
2017-12-21 20:33:40
Alexandre Belloni, Christian Hansen, Whitney Newey
http://arxiv.org/abs/1712.08102v4, http://arxiv.org/pdf/1712.08102v4
econ.EM
28,796
em
This paper investigates the impacts of major natural resource discoveries since 1960 on life expectancy in the nations that they were resource poor prior to the discoveries. Previous literature explains the relation between nations wealth and life expectancy, but it has been silent about the impacts of resource discove...
Resource Abundance and Life Expectancy
2018-01-01 01:43:39
Bahram Sanginabadi
http://arxiv.org/abs/1801.00369v1, http://arxiv.org/pdf/1801.00369v1
econ.EM
28,797
em
In this paper we estimate a Bayesian vector autoregressive model with factor stochastic volatility in the error term to assess the effects of an uncertainty shock in the Euro area. This allows us to treat macroeconomic uncertainty as a latent quantity during estimation. Only a limited number of contributions to the lit...
Implications of macroeconomic volatility in the Euro area
2018-01-09 16:20:42
Niko Hauzenberger, Maximilian Böck, Michael Pfarrhofer, Anna Stelzer, Gregor Zens
http://arxiv.org/abs/1801.02925v2, http://arxiv.org/pdf/1801.02925v2
econ.EM
28,798
em
We report a new result on lotteries --- that a well-funded syndicate has a purely mechanical strategy to achieve expected returns of 10\% to 25\% in an equiprobable lottery with no take and no carryover pool. We prove that an optimal strategy (Nash equilibrium) in a game between the syndicate and other players consists...
A Method for Winning at Lotteries
2018-01-05 22:35:17
Steven D. Moffitt, William T. Ziemba
http://arxiv.org/abs/1801.02958v1, http://arxiv.org/pdf/1801.02958v1
econ.EM
28,799
em
Despite its unusual payout structure, the Canadian 6/49 Lotto is one of the few government sponsored lotteries that has the potential for a favorable strategy we call "buying the pot." By buying the pot we mean that a syndicate buys each ticket in the lottery, ensuring that it holds a jackpot winner. We assume that the...
Does it Pay to Buy the Pot in the Canadian 6/49 Lotto? Implications for Lottery Design
2018-01-06 00:58:18
Steven D. Moffitt, William T. Ziemba
http://arxiv.org/abs/1801.02959v1, http://arxiv.org/pdf/1801.02959v1
econ.EM
28,800
em
Dynamic Discrete Choice Models (DDCMs) are important in the structural estimation literature. Since the structural errors are practically always continuous and unbounded in nature, researchers often use the expected value function. The idea to solve for the expected value function made solution more practical and estim...
Solving Dynamic Discrete Choice Models: Integrated or Expected Value Function?
2018-01-11 23:26:00
Patrick Kofod Mogensen
http://arxiv.org/abs/1801.03978v1, http://arxiv.org/pdf/1801.03978v1
econ.EM
28,801
em
This paper develops a new model and estimation procedure for panel data that allows us to identify heterogeneous structural breaks. We model individual heterogeneity using a grouped pattern. For each group, we allow common structural breaks in the coefficients. However, the number, timing, and size of these breaks can ...
Heterogeneous structural breaks in panel data models
2018-01-15 09:19:28
Ryo Okui, Wendun Wang
http://arxiv.org/abs/1801.04672v2, http://arxiv.org/pdf/1801.04672v2
econ.EM
28,802
em
We characterize common assumption of rationality of 2-person games within an incomplete information framework. We use the lexicographic model with incomplete information and show that a belief hierarchy expresses common assumption of rationality within a complete information framework if and only if there is a belief h...
Characterizing Assumption of Rationality by Incomplete Information
2018-01-15 12:48:20
Shuige Liu
http://arxiv.org/abs/1801.04714v1, http://arxiv.org/pdf/1801.04714v1
econ.EM
28,803
em
We first show (1) the importance of investigating health expenditure process using the order two Markov chain model, rather than the standard order one model, which is widely used in the literature. Markov chain of order two is the minimal framework that is capable of distinguishing those who experience a certain healt...
Quantifying Health Shocks Over the Life Cycle
2018-01-26 13:35:38
Taiyo Fukai, Hidehiko Ichimura, Kyogo Kanazawa
http://arxiv.org/abs/1801.08746v1, http://arxiv.org/pdf/1801.08746v1
econ.EM
28,804
em
We define a modification of the standard Kripke model, called the ordered Kripke model, by introducing a linear order on the set of accessible states of each state. We first show this model can be used to describe the lexicographic belief hierarchy in epistemic game theory, and perfect rationalizability can be characte...
Ordered Kripke Model, Permissibility, and Convergence of Probabilistic Kripke Model
2018-01-26 14:46:28
Shuige Liu
http://arxiv.org/abs/1801.08767v1, http://arxiv.org/pdf/1801.08767v1
econ.EM
28,805
em
Why women avoid participating in a competition and how can we encourage them to participate in it? In this paper, we investigate how social image concerns affect women's decision to compete. We first construct a theoretical model and show that participating in a competition, even under affirmative action policies favor...
How Can We Induce More Women to Competitions?
2018-01-27 11:51:44
Masayuki Yagasaki, Mitsunosuke Morishita
http://arxiv.org/abs/1801.10518v1, http://arxiv.org/pdf/1801.10518v1
econ.EM
28,806
em
The rational choice theory is based on this idea that people rationally pursue goals for increasing their personal interests. In most conditions, the behavior of an actor is not independent of the person and others' behavior. Here, we present a new concept of rational choice as a hyper-rational choice which in this con...
Hyper-rational choice theory
2018-01-12 02:16:09
Madjid Eshaghi Gordji, Gholamreza Askari
http://arxiv.org/abs/1801.10520v2, http://arxiv.org/pdf/1801.10520v2
econ.EM
28,807
em
We develop a new VAR model for structural analysis with mixed-frequency data. The MIDAS-SVAR model allows to identify structural dynamic links exploiting the information contained in variables sampled at different frequencies. It also provides a general framework to test homogeneous frequency-based representations vers...
Structural analysis with mixed-frequency data: A MIDAS-SVAR model of US capital flows
2018-02-02 21:12:12
Emanuele Bacchiocchi, Andrea Bastianin, Alessandro Missale, Eduardo Rossi
http://arxiv.org/abs/1802.00793v1, http://arxiv.org/pdf/1802.00793v1
econ.EM
28,808
em
The development and deployment of matching procedures that incentivize truthful preference reporting is considered one of the major successes of market design research. In this study, we test the degree to which these procedures succeed in eliminating preference misrepresentation. We administered an online experiment t...
An Experimental Investigation of Preference Misrepresentation in the Residency Match
2018-02-05 20:51:55
Alex Rees-Jones, Samuel Skowronek
http://dx.doi.org/10.1073/pnas.1803212115, http://arxiv.org/abs/1802.01990v2, http://arxiv.org/pdf/1802.01990v2
econ.EM
28,809
em
Consumers are creatures of habit, often periodic, tied to work, shopping and other schedules. We analyzed one month of data from the world's largest bike-sharing company to elicit demand behavioral cycles, initially using models from animal tracking that showed large customers fit an Ornstein-Uhlenbeck model with deman...
Prediction of Shared Bicycle Demand with Wavelet Thresholding
2018-02-08 04:17:27
J. Christopher Westland, Jian Mou, Dafei Yin
http://arxiv.org/abs/1802.02683v1, http://arxiv.org/pdf/1802.02683v1
econ.EM
28,810
em
This paper describes a numerical method to solve for mean product qualities which equates the real market share to the market share predicted by a discrete choice model. The method covers a general class of discrete choice model, including the pure characteristics model in Berry and Pakes(2007) and the random coefficie...
A General Method for Demand Inversion
2018-02-13 05:50:46
Lixiong Li
http://arxiv.org/abs/1802.04444v3, http://arxiv.org/pdf/1802.04444v3
econ.EM
29,016
em
This paper develops a set of test statistics based on bilinear forms in the context of the extremum estimation framework with particular interest in nonlinear hypothesis. We show that the proposed statistic converges to a conventional chi-square limit. A Monte Carlo experiment suggests that the test statistic works wel...
Bilinear form test statistics for extremum estimation
2019-12-03 17:32:49
Federico Crudu, Felipe Osorio
http://dx.doi.org/10.1016/j.econlet.2019.108885, http://arxiv.org/abs/1912.01410v1, http://arxiv.org/pdf/1912.01410v1
econ.EM
28,811
em
We provide an epistemic foundation for cooperative games by proof theory via studying the knowledge for players unanimously accepting only core payoffs. We first transform each cooperative game into a decision problem where a player can accept or reject any payoff vector offered to her based on her knowledge about avai...
Knowledge and Unanimous Acceptance of Core Payoffs: An Epistemic Foundation for Cooperative Game Theory
2018-02-13 15:49:12
Shuige Liu
http://arxiv.org/abs/1802.04595v4, http://arxiv.org/pdf/1802.04595v4
econ.EM
28,812
em
In this study interest centers on regional differences in the response of housing prices to monetary policy shocks in the US. We address this issue by analyzing monthly home price data for metropolitan regions using a factor-augmented vector autoregression (FAVAR) model. Bayesian model estimation is based on Gibbs samp...
The dynamic impact of monetary policy on regional housing prices in the US: Evidence based on factor-augmented vector autoregressions
2018-02-16 12:08:34
Manfred M. Fischer, Florian Huber, Michael Pfarrhofer, Petra Staufer-Steinnocher
http://arxiv.org/abs/1802.05870v1, http://arxiv.org/pdf/1802.05870v1
econ.EM
28,813
em
We study the asymptotic properties of a class of estimators of the structural parameters in dynamic discrete choice games. We consider K-stage policy iteration (PI) estimators, where K denotes the number of policy iterations employed in the estimation. This class nests several estimators proposed in the literature such...
On the iterated estimation of dynamic discrete choice games
2018-02-19 18:19:35
Federico A. Bugni, Jackson Bunting
http://arxiv.org/abs/1802.06665v4, http://arxiv.org/pdf/1802.06665v4
econ.EM
28,814
em
This paper proposes nonparametric kernel-smoothing estimation for panel data to examine the degree of heterogeneity across cross-sectional units. We first estimate the sample mean, autocovariances, and autocorrelations for each unit and then apply kernel smoothing to compute their density functions. The dependence of t...
Kernel Estimation for Panel Data with Heterogeneous Dynamics
2018-02-24 12:45:50
Ryo Okui, Takahide Yanagi
http://arxiv.org/abs/1802.08825v4, http://arxiv.org/pdf/1802.08825v4
econ.EM
28,815
em
People reason heuristically in situations resembling inferential puzzles such as Bertrand's box paradox and the Monty Hall problem. The practical significance of that fact for economic decision making is uncertain because a departure from sound reasoning may, but does not necessarily, result in a "cognitively biased" o...
Identifying the occurrence or non occurrence of cognitive bias in situations resembling the Monty Hall problem
2018-02-25 03:28:11
Fatemeh Borhani, Edward J. Green
http://arxiv.org/abs/1802.08935v1, http://arxiv.org/pdf/1802.08935v1
econ.EM
28,816
em
I analyse the solution method for the variational optimisation problem in the rational inattention framework proposed by Christopher A. Sims. The solution, in general, does not exist, although it may exist in exceptional cases. I show that the solution does not exist for the quadratic and the logarithmic objective func...
On the solution of the variational optimisation in the rational inattention framework
2018-02-27 16:21:46
Nigar Hashimzade
http://arxiv.org/abs/1802.09869v2, http://arxiv.org/pdf/1802.09869v2
econ.EM
28,830
em
This paper proposes a model-free approach to analyze panel data with heterogeneous dynamic structures across observational units. We first compute the sample mean, autocovariances, and autocorrelations for each unit, and then estimate the parameters of interest based on their empirical distributions. We then investigat...
Panel Data Analysis with Heterogeneous Dynamics
2018-03-26 10:53:47
Ryo Okui, Takahide Yanagi
http://arxiv.org/abs/1803.09452v2, http://arxiv.org/pdf/1803.09452v2
econ.EM
28,817
em
Many macroeconomic policy questions may be assessed in a case study framework, where the time series of a treated unit is compared to a counterfactual constructed from a large pool of control units. I provide a general framework for this setting, tailored to predict the counterfactual by minimizing a tradeoff between u...
Synthetic Control Methods and Big Data
2018-03-01 00:32:09
Daniel Kinn
http://arxiv.org/abs/1803.00096v1, http://arxiv.org/pdf/1803.00096v1
econ.EM
28,818
em
It is widely known that geographically weighted regression(GWR) is essentially same as varying-coefficient model. In the former research about varying-coefficient model, scholars tend to use multidimensional-kernel-based locally weighted estimation(MLWE) so that information of both distance and direction is considered....
An Note on Why Geographically Weighted Regression Overcomes Multidimensional-Kernel-Based Varying-Coefficient Model
2018-03-04 21:50:17
Zihao Yuan
http://arxiv.org/abs/1803.01402v2, http://arxiv.org/pdf/1803.01402v2
econ.EM
28,819
em
We study three pricing mechanisms' performance and their effects on the participants in the data industry from the data supply chain perspective. A win-win pricing strategy for the players in the data supply chain is proposed. We obtain analytical solutions in each pricing mechanism, including the decentralized and cen...
Pricing Mechanism in Information Goods
2018-03-05 10:37:06
Xinming Li, Huaqing Wang
http://arxiv.org/abs/1803.01530v1, http://arxiv.org/pdf/1803.01530v1
econ.EM
28,820
em
Spatial association and heterogeneity are two critical areas in the research about spatial analysis, geography, statistics and so on. Though large amounts of outstanding methods has been proposed and studied, there are few of them tend to study spatial association under heterogeneous environment. Additionally, most of ...
A Nonparametric Approach to Measure the Heterogeneous Spatial Association: Under Spatial Temporal Data
2018-03-06 21:46:49
Zihao Yuan
http://arxiv.org/abs/1803.02334v2, http://arxiv.org/pdf/1803.02334v2
econ.EM
28,821
em
The last technical barriers to trade(TBT) between countries are Non-Tariff Barriers(NTBs), meaning all trade barriers are possible other than Tariff Barriers. And the most typical examples are (TBT), which refer to measure Technical Regulation, Standards, Procedure for Conformity Assessment, Test & Certification etc. T...
A study of strategy to the remove and ease TBT for increasing export in GCC6 countries
2018-03-09 09:39:31
YongJae Kim
http://arxiv.org/abs/1803.03394v3, http://arxiv.org/pdf/1803.03394v3
econ.EM
28,822
em
Understanding the effectiveness of alternative approaches to water conservation is crucially important for ensuring the security and reliability of water services for urban residents. We analyze data from one of the longest-running "cash for grass" policies - the Southern Nevada Water Authority's Water Smart Landscapes...
How Smart Are `Water Smart Landscapes'?
2018-03-13 05:00:07
Christa Brelsford, Joshua K. Abbott
http://arxiv.org/abs/1803.04593v1, http://arxiv.org/pdf/1803.04593v1
econ.EM
28,823
em
The business cycles are generated by the oscillating macro-/micro-/nano- economic output variables in the economy of the scale and the scope in the amplitude/frequency/phase/time domains in the economics. The accurate forward looking assumptions on the business cycles oscillation dynamics can optimize the financial cap...
Business Cycles in Economics
2018-03-16 11:24:05
Viktor O. Ledenyov, Dimitri O. Ledenyov
http://dx.doi.org/10.2139/ssrn.3134655, http://arxiv.org/abs/1803.06108v1, http://arxiv.org/pdf/1803.06108v1
econ.EM
28,824
em
Unobserved heterogeneous treatment effects have been emphasized in the recent policy evaluation literature (see e.g., Heckman and Vytlacil, 2005). This paper proposes a nonparametric test for unobserved heterogeneous treatment effects in a treatment effect model with a binary treatment assignment, allowing for individu...
Testing for Unobserved Heterogeneous Treatment Effects with Observational Data
2018-03-20 19:30:07
Yu-Chin Hsu, Ta-Cheng Huang, Haiqing Xu
http://arxiv.org/abs/1803.07514v2, http://arxiv.org/pdf/1803.07514v2
econ.EM
28,825
em
In the regression discontinuity design (RDD), it is common practice to assess the credibility of the design by testing the continuity of the density of the running variable at the cut-off, e.g., McCrary (2008). In this paper we propose an approximate sign test for continuity of a density at a point based on the so-call...
Testing Continuity of a Density via g-order statistics in the Regression Discontinuity Design
2018-03-21 17:52:59
Federico A. Bugni, Ivan A. Canay
http://arxiv.org/abs/1803.07951v6, http://arxiv.org/pdf/1803.07951v6
econ.EM
28,826
em
In this paper, we propose the use of causal inference techniques for survival function estimation and prediction for subgroups of the data, upto individual units. Tree ensemble methods, specifically random forests were modified for this purpose. A real world healthcare dataset was used with about 1800 patients with bre...
Causal Inference for Survival Analysis
2018-03-22 06:22:19
Vikas Ramachandra
http://arxiv.org/abs/1803.08218v1, http://arxiv.org/pdf/1803.08218v1
econ.EM
28,827
em
Linear regressions with period and group fixed effects are widely used to estimate treatment effects. We show that they estimate weighted sums of the average treatment effects (ATE) in each group and period, with weights that may be negative. Due to the negative weights, the linear regression coefficient may for instan...
Two-way fixed effects estimators with heterogeneous treatment effects
2018-03-22 01:56:07
Clément de Chaisemartin, Xavier D'Haultfœuille
http://dx.doi.org/10.1257/aer.20181169, http://arxiv.org/abs/1803.08807v7, http://arxiv.org/pdf/1803.08807v7
econ.EM
28,828
em
We examine the effects of monetary policy on income inequality in Japan using a novel econometric approach that jointly estimates the Gini coefficient based on micro-level grouped data of households and the dynamics of macroeconomic quantities. Our results indicate different effects on income inequality for different t...
How does monetary policy affect income inequality in Japan? Evidence from grouped data
2018-03-23 19:28:23
Martin Feldkircher, Kazuhiko Kakamu
http://dx.doi.org/10.1007/s00181-021-02102-7, http://arxiv.org/abs/1803.08868v2, http://arxiv.org/pdf/1803.08868v2
econ.EM
28,829
em
We develop inference for a two-sided matching model where the characteristics of agents on one side of the market are endogenous due to pre-matching investments. The model can be used to measure the impact of frictions in labour markets using a single cross-section of matched employer-employee data. The observed matchi...
Schooling Choice, Labour Market Matching, and Wages
2018-03-24 03:41:09
Jacob Schwartz
http://arxiv.org/abs/1803.09020v6, http://arxiv.org/pdf/1803.09020v6
econ.EM
28,831
em
In this paper, we assess the impact of climate shocks on futures markets for agricultural commodities and a set of macroeconomic quantities for multiple high-income economies. To capture relations among countries, markets, and climate shocks, this paper proposes parsimonious methods to estimate high-dimensional panel V...
A Bayesian panel VAR model to analyze the impact of climate change on high-income economies
2018-04-04 21:23:10
Florian Huber, Tamás Krisztin, Michael Pfarrhofer
http://arxiv.org/abs/1804.01554v3, http://arxiv.org/pdf/1804.01554v3
econ.EM
28,832
em
This paper provides a new methodology to analyze unobserved heterogeneity when observed characteristics are modeled nonlinearly. The proposed model builds on varying random coefficients (VRC) that are determined by nonlinear functions of observed regressors and additively separable unobservables. This paper proposes a ...
Varying Random Coefficient Models
2018-04-09 20:16:52
Christoph Breunig
http://arxiv.org/abs/1804.03110v4, http://arxiv.org/pdf/1804.03110v4
econ.EM
28,833
em
We develop point-identification for the local average treatment effect when the binary treatment contains a measurement error. The standard instrumental variable estimator is inconsistent for the parameter since the measurement error is non-classical by construction. We correct the problem by identifying the distributi...
Inference on Local Average Treatment Effects for Misclassified Treatment
2018-04-10 08:57:30
Takahide Yanagi
http://arxiv.org/abs/1804.03349v1, http://arxiv.org/pdf/1804.03349v1
econ.EM
28,834
em
This paper re-examines the Shapley value methods for attribution analysis in the area of online advertising. As a credit allocation solution in cooperative game theory, Shapley value method directly quantifies the contribution of online advertising inputs to the advertising key performance indicator (KPI) across multip...
Shapley Value Methods for Attribution Modeling in Online Advertising
2018-04-15 12:19:25
Kaifeng Zhao, Seyed Hanif Mahboobi, Saeed R. Bagheri
http://arxiv.org/abs/1804.05327v1, http://arxiv.org/pdf/1804.05327v1
econ.EM
28,835
em
To estimate the dynamic effects of an absorbing treatment, researchers often use two-way fixed effects regressions that include leads and lags of the treatment. We show that in settings with variation in treatment timing across units, the coefficient on a given lead or lag can be contaminated by effects from other peri...
Estimating Dynamic Treatment Effects in Event Studies with Heterogeneous Treatment Effects
2018-04-16 19:54:46
Liyang Sun, Sarah Abraham
http://arxiv.org/abs/1804.05785v2, http://arxiv.org/pdf/1804.05785v2
econ.EM
28,836
em
This paper offers a two-pronged critique of the empirical investigation of the income distribution performed by physicists over the past decade. Their finding rely on the graphical analysis of the observed distribution of normalized incomes. Two central observations lead to the conclusion that the majority of incomes a...
Revisiting the thermal and superthermal two-class distribution of incomes: A critical perspective
2018-04-17 19:09:59
Markus P. A. Schneider
http://dx.doi.org/10.1140/epjb/e2014-50501-x, http://arxiv.org/abs/1804.06341v1, http://arxiv.org/pdf/1804.06341v1
econ.EM
28,837
em
Researchers increasingly leverage movement across multiple treatments to estimate causal effects. While these "mover regressions" are often motivated by a linear constant-effects model, it is not clear what they capture under weaker quasi-experimental assumptions. I show that binary treatment mover regressions recover ...
Estimating Treatment Effects in Mover Designs
2018-04-18 16:42:55
Peter Hull
http://arxiv.org/abs/1804.06721v1, http://arxiv.org/pdf/1804.06721v1
econ.EM
28,838
em
The study aims to identify the institutional flaws of the current EU waste management model by analysing the economic model of extended producer responsibility and collective waste management systems and to create a model for measuring the transaction costs borne by waste recovery organizations. The model was approbate...
Transaction Costs in Collective Waste Recovery Systems in the EU
2018-04-18 18:40:15
Shteryo Nozharov
http://arxiv.org/abs/1804.06792v1, http://arxiv.org/pdf/1804.06792v1
econ.EM
28,839
em
We study the foundations of empirical equilibrium, a refinement of Nash equilibrium that is based on a non-parametric characterization of empirical distributions of behavior in games (Velez and Brown,2020b arXiv:1907.12408). The refinement can be alternatively defined as those Nash equilibria that do not refute the reg...
Empirical Equilibrium
2018-04-21 18:38:24
Rodrigo A. Velez, Alexander L. Brown
http://arxiv.org/abs/1804.07986v3, http://arxiv.org/pdf/1804.07986v3
econ.EM
28,840
em
We analyze an operational policy for a multinational manufacturer to hedge against exchange rate uncertainties and competition. We consider a single product and single period. Because of long-lead times, the capacity investment must done before the selling season begins when the exchange rate between the two countries ...
Price Competition with Geometric Brownian motion in Exchange Rate Uncertainty
2018-04-22 21:33:53
Murat Erkoc, Huaqing Wang, Anas Ahmed
http://arxiv.org/abs/1804.08153v1, http://arxiv.org/pdf/1804.08153v1
econ.EM
28,841
em
Call centers' managers are interested in obtaining accurate point and distributional forecasts of call arrivals in order to achieve an optimal balance between service quality and operating costs. We present a strategy for selecting forecast models of call arrivals which is based on three pillars: (i) flexibility of the...
Statistical and Economic Evaluation of Time Series Models for Forecasting Arrivals at Call Centers
2018-04-23 12:57:42
Andrea Bastianin, Marzio Galeotti, Matteo Manera
http://dx.doi.org/10.1007/s00181-018-1475-y, http://arxiv.org/abs/1804.08315v1, http://arxiv.org/pdf/1804.08315v1
econ.EM
28,842
em
Economic inequality is one of the pivotal issues for most of economic and social policy makers across the world to insure the sustainable economic growth and justice. In the mainstream school of economics, namely neoclassical theories, economic issues are dealt with in a mechanistic manner. Such a mainstream framework ...
Economic inequality and Islamic Charity: An exploratory agent-based modeling approach
2018-04-25 01:43:11
Hossein Sabzian, Alireza Aliahmadi, Adel Azar, Madjid Mirzaee
http://arxiv.org/abs/1804.09284v1, http://arxiv.org/pdf/1804.09284v1
econ.EM
28,843
em
This paper is concerned with inference about low-dimensional components of a high-dimensional parameter vector $\beta^0$ which is identified through instrumental variables. We allow for eigenvalues of the expected outer product of included and excluded covariates, denoted by $M$, to shrink to zero as the sample size in...
Ill-posed Estimation in High-Dimensional Models with Instrumental Variables
2018-06-02 19:41:24
Christoph Breunig, Enno Mammen, Anna Simoni
http://arxiv.org/abs/1806.00666v2, http://arxiv.org/pdf/1806.00666v2
econ.EM
28,863
em
By recasting indirect inference estimation as a prediction rather than a minimization and by using regularized regressions, we can bypass the three major problems of estimation: selecting the summary statistics, defining the distance function and minimizing it numerically. By substituting regression with classification...
Indirect inference through prediction
2018-07-04 16:52:24
Ernesto Carrella, Richard M. Bailey, Jens Koed Madsen
http://dx.doi.org/10.18564/jasss.4150, http://arxiv.org/abs/1807.01579v1, http://arxiv.org/pdf/1807.01579v1
econ.EM
28,844
em
I propose a nonparametric iid bootstrap procedure for the empirical likelihood, the exponential tilting, and the exponentially tilted empirical likelihood estimators that achieves asymptotic refinements for t tests and confidence intervals, and Wald tests and confidence regions based on such estimators. Furthermore, th...
Asymptotic Refinements of a Misspecification-Robust Bootstrap for Generalized Empirical Likelihood Estimators
2018-06-04 07:54:48
Seojeong Lee
http://dx.doi.org/10.1016/j.jeconom.2015.11.003, http://arxiv.org/abs/1806.00953v2, http://arxiv.org/pdf/1806.00953v2
econ.EM
28,845
em
Many studies use shift-share (or ``Bartik'') instruments, which average a set of shocks with exposure share weights. We provide a new econometric framework for shift-share instrumental variable (SSIV) regressions in which identification follows from the quasi-random assignment of shocks, while exposure shares are allow...
Quasi-Experimental Shift-Share Research Designs
2018-06-04 20:03:07
Kirill Borusyak, Peter Hull, Xavier Jaravel
http://arxiv.org/abs/1806.01221v9, http://arxiv.org/pdf/1806.01221v9
econ.EM
28,846
em
The implementation of a supervision and incentive process for identical workers may lead to wage variance that stems from employer and employee optimization. The harder it is to assess the nature of the labor output, the more important such a process becomes, and the influence of such a process on wage development grow...
The Impact of Supervision and Incentive Process in Explaining Wage Profile and Variance
2018-06-04 22:05:37
Nitsa Kasir, Idit Sohlberg
http://arxiv.org/abs/1806.01332v1, http://arxiv.org/pdf/1806.01332v1
econ.EM
28,847
em
I propose a nonparametric iid bootstrap that achieves asymptotic refinements for t tests and confidence intervals based on GMM estimators even when the model is misspecified. In addition, my bootstrap does not require recentering the moment function, which has been considered as critical for GMM. Regardless of model mi...
Asymptotic Refinements of a Misspecification-Robust Bootstrap for Generalized Method of Moments Estimators
2018-06-05 04:13:06
Seojeong Lee
http://dx.doi.org/10.1016/j.jeconom.2013.05.008, http://arxiv.org/abs/1806.01450v1, http://arxiv.org/pdf/1806.01450v1
econ.EM
28,848
em
Under treatment effect heterogeneity, an instrument identifies the instrument-specific local average treatment effect (LATE). With multiple instruments, two-stage least squares (2SLS) estimand is a weighted average of different LATEs. What is often overlooked in the literature is that the postulated moment condition ev...
A Consistent Variance Estimator for 2SLS When Instruments Identify Different LATEs
2018-06-05 04:36:49
Seojeong Lee
http://dx.doi.org/10.1080/07350015.2016.1186555, http://arxiv.org/abs/1806.01457v1, http://arxiv.org/pdf/1806.01457v1
econ.EM
28,849
em
We propose leave-out estimators of quadratic forms designed for the study of linear models with unrestricted heteroscedasticity. Applications include analysis of variance and tests of linear restrictions in models with many regressors. An approximation algorithm is provided that enables accurate computation of the esti...
Leave-out estimation of variance components
2018-06-05 07:59:27
Patrick Kline, Raffaele Saggio, Mikkel Sølvsten
http://arxiv.org/abs/1806.01494v2, http://arxiv.org/pdf/1806.01494v2
econ.EM
28,850
em
Autonomous ships (AS) used for cargo transport have gained a considerable amount of attention in recent years. They promise benefits such as reduced crew costs, increased safety and increased flexibility. This paper explores the effects of a faster increase in technological performance in maritime shipping achieved by ...
A Quantitative Analysis of Possible Futures of Autonomous Transport
2018-06-05 17:00:58
Christopher L. Benson, Pranav D Sumanth, Alina P Colling
http://arxiv.org/abs/1806.01696v1, http://arxiv.org/pdf/1806.01696v1
econ.EM
28,851
em
A standard growth model is modified in a straightforward way to incorporate what Keynes (1936) suggests in the "essence" of his general theory. The theoretical essence is the idea that exogenous changes in investment cause changes in employment and unemployment. We implement this idea by assuming the path for capital g...
A Growth Model with Unemployment
2018-06-11 23:29:04
Mina Mahmoudi, Mark Pingle
http://arxiv.org/abs/1806.04228v1, http://arxiv.org/pdf/1806.04228v1
econ.EM
28,852
em
This study provides the theoretical framework and empirical model for productivity growth evaluations in agricultural sector as one of the most important sectors in Iran's economic development plan. We use the Solow residual model to measure the productivity growth share in the value-added growth of the agricultural se...
The Role of Agricultural Sector Productivity in Economic Growth: The Case of Iran's Economic Development Plan
2018-06-11 23:43:32
Morteza Tahamipour, Mina Mahmoudi
http://arxiv.org/abs/1806.04235v1, http://arxiv.org/pdf/1806.04235v1
econ.EM
28,853
em
Tariff liberalization and its impact on tax revenue is an important consideration for developing countries, because they are increasingly facing the difficult task of implementing and harmonizing regional and international trade commitments. The tariff reform and its costs for Iranian government is one of the issues th...
Estimating Trade-Related Adjustment Costs in the Agricultural Sector in Iran
2018-06-11 23:44:02
Omid Karami, Mina Mahmoudi
http://arxiv.org/abs/1806.04238v1, http://arxiv.org/pdf/1806.04238v1
econ.EM
28,854
em
We consider the relation between Sion's minimax theorem for a continuous function and a Nash equilibrium in an asymmetric multi-players zero-sum game in which only one player is different from other players, and the game is symmetric for the other players. Then, 1. The existence of a Nash equilibrium, which is symmet...
On the relation between Sion's minimax theorem and existence of Nash equilibrium in asymmetric multi-players zero-sum game with only one alien
2018-06-17 04:11:55
Atsuhiro Satoh, Yasuhito Tanaka
http://arxiv.org/abs/1806.07253v1, http://arxiv.org/pdf/1806.07253v1
econ.EM
28,855
em
It is common practice in empirical work to employ cluster-robust standard errors when using the linear regression model to estimate some structural/causal effect of interest. Researchers also often include a large set of regressors in their model specification in order to control for observed and unobserved confounders...
Cluster-Robust Standard Errors for Linear Regression Models with Many Controls
2018-06-19 18:48:50
Riccardo D'Adamo
http://arxiv.org/abs/1806.07314v3, http://arxiv.org/pdf/1806.07314v3
econ.EM
28,856
em
We study inference in shift-share regression designs, such as when a regional outcome is regressed on a weighted average of sectoral shocks, using regional sector shares as weights. We conduct a placebo exercise in which we estimate the effect of a shift-share regressor constructed with randomly generated sectoral shoc...
Shift-Share Designs: Theory and Inference
2018-06-20 21:57:10
Rodrigo Adão, Michal Kolesár, Eduardo Morales
http://dx.doi.org/10.1093/qje/qjz025, http://arxiv.org/abs/1806.07928v5, http://arxiv.org/pdf/1806.07928v5
econ.EM
28,857
em
In this paper, we explore the relationship between state-level household income inequality and macroeconomic uncertainty in the United States. Using a novel large-scale macroeconometric model, we shed light on regional disparities of inequality responses to a national uncertainty shock. The results suggest that income ...
The transmission of uncertainty shocks on income inequality: State-level evidence from the United States
2018-06-21 17:57:45
Manfred M. Fischer, Florian Huber, Michael Pfarrhofer
http://arxiv.org/abs/1806.08278v1, http://arxiv.org/pdf/1806.08278v1
econ.EM
28,858
em
We propose a new class of unit root tests that exploits invariance properties in the Locally Asymptotically Brownian Functional limit experiment associated to the unit root model. The invariance structures naturally suggest tests that are based on the ranks of the increments of the observations, their average, and an a...
Semiparametrically Point-Optimal Hybrid Rank Tests for Unit Roots
2018-06-25 10:03:48
Bo Zhou, Ramon van den Akker, Bas J. M. Werker
http://dx.doi.org/10.1214/18-AOS1758, http://arxiv.org/abs/1806.09304v1, http://arxiv.org/pdf/1806.09304v1
econ.EM
28,859
em
In this article we introduce a general nonparametric point-identification result for nonseparable triangular models with a multivariate first- and second stage. Based on this we prove point-identification of Hedonic models with multivariate heterogeneity and endogenous observable characteristics, extending and compleme...
Point-identification in multivariate nonseparable triangular models
2018-06-25 22:36:39
Florian Gunsilius
http://arxiv.org/abs/1806.09680v1, http://arxiv.org/pdf/1806.09680v1
econ.EM
28,860
em
Historical examination of the Bretton Woods system allows comparisons to be made with the current evolution of the EMS.
The Bretton Woods Experience and ERM
2018-07-02 03:00:20
Chris Kirrane
http://arxiv.org/abs/1807.00418v1, http://arxiv.org/pdf/1807.00418v1
econ.EM
28,861
em
This paper describes the opportunities and also the difficulties of EMU with regard to international monetary cooperation. Even though the institutional and intellectual assistance to the coordination of monetary policy in the EU will probably be strengthened with the EMU, among the shortcomings of the Maastricht Treat...
Maastricht and Monetary Cooperation
2018-07-02 03:01:08
Chris Kirrane
http://arxiv.org/abs/1807.00419v1, http://arxiv.org/pdf/1807.00419v1
econ.EM
28,862
em
This paper proposes a hierarchical modeling approach to perform stochastic model specification in Markov switching vector error correction models. We assume that a common distribution gives rise to the regime-specific regression coefficients. The mean as well as the variances of this distribution are treated as fully s...
Stochastic model specification in Markov switching vector error correction models
2018-07-02 11:36:11
Niko Hauzenberger, Florian Huber, Michael Pfarrhofer, Thomas O. Zörner
http://arxiv.org/abs/1807.00529v2, http://arxiv.org/pdf/1807.00529v2
econ.EM
28,864
em
This paper studies the identifying content of the instrument monotonicity assumption of Imbens and Angrist (1994) on the distribution of potential outcomes in a model with a binary outcome, a binary treatment and an exogenous binary instrument. Specifically, I derive necessary and sufficient conditions on the distribut...
On the Identifying Content of Instrument Monotonicity
2018-07-04 19:25:35
Vishal Kamat
http://arxiv.org/abs/1807.01661v2, http://arxiv.org/pdf/1807.01661v2
econ.EM
28,865
em
This paper develops an inferential theory for state-varying factor models of large dimensions. Unlike constant factor models, loadings are general functions of some recurrent state process. We develop an estimator for the latent factors and state-varying loadings under a large cross-section and time dimension. Our esti...
State-Varying Factor Models of Large Dimensions
2018-07-06 07:05:40
Markus Pelger, Ruoxuan Xiong
http://arxiv.org/abs/1807.02248v4, http://arxiv.org/pdf/1807.02248v4
econ.EM
28,866
em
The methods of new institutional economics for identifying the transaction costs of trade litigations in Bulgaria are used in the current paper. For the needs of the research, an indicative model, measuring this type of costs on microeconomic level, is applied in the study. The main purpose of the model is to forecast ...
Transaction costs and institutional change of trade litigations in Bulgaria
2018-07-09 13:34:56
Shteryo Nozharov, Petya Koralova-Nozharova
http://arxiv.org/abs/1807.03034v1, http://arxiv.org/pdf/1807.03034v1
econ.EM