In this paper we examine the sectoral demand for U.K. gilt-edged securities. The Tobin-Markowitz model of portfolio choice generates the prediction that asset holdings should be negatively correlated with the own price, and positively correlated with the prices of major substitutes. In contrast,...

We develop and estimate a simple regenerative optimal stopping model of aircraft engine maintenance that attempts to describe the behaviour of airline maintenance personnel. The model assumes that the decision to send an engine to the shop for overhaul is the solution to a stochastic dynamic...

In this paper we demonstrate a new way of testing the linear quadratic adjustment cost (LQAC) model under rational expectations. We illustrate how the parameter restrictions arising from this model can be formally specified and we use these restrictions to extend the technique of Campbell and...

We estimate price and income elasticities from a linear, log-linear, and the almost ideal demand model (with and without an adjustment for selectivity bias) in an effort to show that special attention should be paid to the underlying assumptions of consumer behaviour when estimating a medical...

This paper describes a Monte Carlo procedure to assess the performance of calibrated dynamic general equilibrium models. The procedure formalizes the choice of parameters and the evaluation of the model and provides an efficient way to conduct a sensitivity analysis for perturbations of the...

We augment an ordered response model for the job level at which individuals desire to work with allowance for individual reporting of a discrepancy between actual and desired job level, and we also investigate possible biases from restricting the observations to the employed, and omitting the...

The implications of matching function models for the relationship between labour market tightness and the transition probability into employment are summarized. These implications are then tested using monthly data for three Canadian provinces: British Columbia, Ontario, and Quebec. Testing...