The way in which economic agents respond to unexpected changes to demand is a central issue in contemporary business cycle theories. Although several empirical papers have used macro data to evaluate this issue there are very few results available that have used direct measures of expectation...

The covariance transformation is a useful and often necessary procedure to estimate the fixed effects model. When some explanatory variables are contemporaneously correlated with the disturbance term, the slope coefficients can be consistently estimated by an instrumental variables estimator....

Lucas (1976) argues that in the event of policy regime changes, regression models are by construction misspecified and therefore behave poorly. Unstable exonometric regressions, however, do not exclude the possibility of an underlying constant behavioral function. When marginal processes are...

This paper presents evidence on the relationship between duration and wage determination in the United Kingdom based upon a data set obtained by combining the Family Expenditure Survey for 1980-86, supplemented with regional unemployment rates and cost of living indices. The results support the...

A fixed effects panel model with randomly missing data is considered. The incomplete data are characterized as a set of blocks of complete data. A covariance (CV) estimator for the incomplete data is developed. It is a linear combination of the CB estimators of each of the complete blocks, with...

The authors adopt a stochastic model of labor-market turnover in order to analyze entries to and exits from paid employment by British lone mothers. They estimate the model using demographic and employment-history data from the 1980 Women and Employment Survey. The theoretical model predicts...

This paper examines the pattern of entry across three segments of the U.K. car industry, 1958-83. A probit model of the entry decision is developed in which expected post-entry profits depend on expected post-entry advertising shares (and other factors) in a firm, market segment and time...

The authors' major concern is the distribution of job durations in the Netherlands. They specify a competing risk model in which job to job transitions are distinguished from transitions to other labor market states. Within each subhazard special attention is paid to differences between...