Can groups with equal productive potential end up in equilibria in which they get different average wages? We consider a simple model of statistical discrimination that shows that this might happen. Discrimination in this model is possible for the existence of multiple equilibria. We study what...

What can one infer about labor market flows from matched employer- employee panel data? The purpose of this paper is to sketch possible answers to this question. A general but simple labor market equilibrium model of hire and separation flows is developed in the paper. The model embodies the...

Much recent work has focused on the estimation of regression functions in samples which are truncated or censored. Much of this work has focused on the estimation of a parametric regression function with an error distribution of unknown form. While these method relax a strong parametric...

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We introduce a new method for the estimation of discount functions, yield curves and forward curves from government issued coupon bonds. Our approach is nonparametric and does not assume a particular functional form for the discount function although we do show how to impose various restrictions...

Empirical studies of intergenerational transfers usually find that bequests are equally divided among heirs while inter vivos gifts tend to be compensatory. Using the HRS data set from the U.S. we find that only 5 % of parents who give, divide their gifts equally among their children. Estimating...

The effectiveness of policies to reduce the use of energy depend on the elasticity of substitution between the various inputs and on the rate of technological progress. This paper presents a theoretical model emphasising energy investments’ characteristics of uncertainty and irreversibility...

We analyze in a two-period model the effect of relative consumption on saving by assuming that people care about their ordinal rank in the consumption distribution at each date. We outline some general properties of the model and then completely solve a simple version. We show that a rise in...

This paper addresses the criticism that balanced growth models are inconsistent with the dynamics of structural change typical for the process of economic growth. Using a sectoral disaggregated version of a research--driven growth model, we develop the concept of a generalized balanced growth...