We describe a new simulation-based algorithm for Bayesian estimation of structural effects in models where the outcome of interest and an endogenous treatment variable are ordered. Our algorithm makes use of a reparameterization, suggested by Nandram and Chen (1996) in the context of a single...

Recently, health systems internationally have begun to use cost-effectiveness research as formal inputs into decisions about which interventions and programmes should be funded from collective resources. This process has raised some important methodological questions for this area of research....

This paper uses an unobserved component model to examine the relative importance of the structural and the persistence approach to unemployment. We derive the NAIRU from a standard imperfect competition model. The price- and wage-setting schedules include a measure for unemployment persistence....

Have interest rates been held “too low†in relation to the natural rate of interest? Economists have lately begun to worry that the cost of capital may have fallen below the worldwide expected return on capital, thereby causing excessive borrowing and allowing financial imbalances to...

When making product choices, consumers are influenced by the preferences of other consumers, such as family members, friends, neighbors, and colleagues. Preference interdependence among family members is likely to be significant because of cohabitation and strong emotional ties. To estimate the...