Monotonicity and the Roy Model

In this note we study the implications on a bivariate normal Roy Model of two sets of monotonicity hypotheses proposed recently by Manski and Pepper (2000). In that simple context, we show that these hypotheses imply strong restrictions on the correlations structure between the decision and the rewards.

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Year of publication:	2002-11-05
Authors:	Chevalier, Arnaud ; Lanot, Gauthier
Institutions:	EconWPA
Subject:	Roy Model \| Monotonicity Conditions

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Extent:	application/pdf
Series:	Labor and Demography.
Type of publication:	Book / Working Paper
Notes:	Type of Document - pdf; prepared on pc; pages: 16 16 pages
Classification:	C25 - Discrete Regression and Qualitative Choice Models ; J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005556838