In this paper we provide a computation algorithm to get a global solution for the maximum rank correlation estimator using the mixed integer programming (MIP) approach. We construct a new constrained optimization problem by transforming all indicator functions into binary parameters to be...

We propose a novel conditional quantile prediction method based on the complete subset averaging (CSA) for quantile regressions. All models under consideration are potentially misspecified and the dimension of regressors goes to infinity as the sample size increases. Since we average over the...

We uncover new facts: U.S. banks countercyclically vary the ratio of charge-offs to defaulted loans (COD). The variance of this ratio is roughly 15 times larger than that of GDP. Canonical financial accelerator models cannot explain this variance. We develop an expression for the wedge between...

We design a series of laboratory experiments to investigate the effects of purchasing insurance and of pre-filled claim forms on dishonesty in loss reporting. In our experiment, participants report the outcome of privately rolling two dice where the numbers rolled map to a payoff distribution...

This paper studies pre-match investment competition with upper and lower bounds on feasible transfers to sellers in a general signaling environment, where the types of buyers and sellers are private information and the surplus may depend on both types and investments. Bounded transfers create...

We study the impact of trade on a country catching up to the industrial leader. We calibrate our dynamic, two-country model to Spain and UK from 1850 to 2000, accounting for the inter-war trade collapse (IWTC) and the subsequent catch up by Spain. In our model, the effects of trade disruptions...

This paper proposes a tractable competing mechanism game where each seller simultaneously posts a trading contract that specifies a menu of dominant strategy incentive compatible (DIC) direct mechanisms conditional on an array of messages sent by buyers, and each seller subsequently chooses a...

Abstract: In this paper we propose a two-stage least squares (2SLS) estimator whose first stage is based on the equal-weight average over a complete subset. We derive the approximate mean squared error (MSE) that depends on the size of the complete subset and characterize the proposed estimator...

Classical unit root tests are known to suffer from potentially crippling size distortions, and a range of procedures have been proposed to attenuate this problem, including the use of bootstrap procedures. It is also known that the estimating equation's functional form can affect the outcome of...

This paper studies firm offshoring behaviour following the Canada-Peru Foreign Investment Protection Agreement (FIPA) enactment in 2007. This is achieved by using confidential Statistics Canada firm tax filing microdata merged with raw firm-level import microdata. While in the aggregate data,...