This paper presents identification and estimation results for a flexible state space model. Our modification of the canonical model allows the permanent component to follow a unit root process and the transitory component to follow a semiparametric model of a higher‐order...

Micro, small, and medium-sized enterprises (MSMEs) are recognized as crucial drivers of economic development, particularly in low- and middle-income countries. The advent of digital platforms, characterized by economies of scale and significant cross-network externalities in two-sided markets,...

We develop the theory of stability for aggregate matchings used in empirical studies and establish fundamental properties of stable matchings including the result that the set of stable matchings is a non-empty, complete, and distributive lattice. Aggregate matchings are relevant as matching...