This paper develops the theoretical background for the Limited Information Bayesian Model Averaging (LIBMA). The proposed approach accounts for model uncertainty by averaging over all possible combinations of predictors when making inferences about the variables of interest, and it...

This study examines the effect of research and development subsidies on the private funding of R?D in France. We address this issue from the annual R?D survey over 1985-1997, which provides information about the R?D subsidies given by all the ministries to the firms having at least one full-time...

We propose using a Bayesian time-varying coefficient model estimated with Markov chain-Monte Carlo methods to measure contagion empirically. The proposed measure works in the joint presence of heteroskedasticity and omitted variables and does not require knowledge of the timing of the crisis. It...

In this experimental study we examine behavior relating to voluntary contributions to reduce expected losses associated, for example, with the occurrence of natural disasters or major industrial accidents. We ask subjects to allocate tokens between a private investment and a public investment....

We use structural methods to assess equilibrium models of bidding with data from first-price auction experiments. We identify conditions to test the Nash equilibrium models for homogenous and for heterogeneous constant relative risk aversion when bidders private valuations are independent and...

This paper introduces similarity among strategies in the payoff assessment model of choice (Sarin and Vahid (1999, GEB)). The assessments of strategies that are more similar to the chosen strategy are updated more similarly to the chosen strategy. We use this model to explain a recent experiment.