This note presents a new solution to the classic problem with using hedonic price functions to recover demand curves. Unexpected changes in the composition of a differentiated product can generate instruments that support a simple reduced-form approach to demand estimation.

This paper discusses the copula-based approach of a bivariate binary choice model. We derive the marginal effects of explanatory variables on an outcome of interest (both direct and indirect) in the model. We also show that the signs of the marginal effects are determined by the signs of the...

This paper proposes an ℓ1 penalized quantile regression estimator which adapts the Hausman–Taylor instrumental variable approach in order to address the bias resulting from the shrinkage of the individual effects.

This note discusses partial identification in a nonparametric triangular system with discrete endogenous regressors and nonseparable errors. Recently, Jun et al. (2011, JPX) provide bounds on the structural function evaluated at particular values using exclusion, exogeneity and rank conditions....

We propose a HAC estimator for the covariance matrix of the fixed effects estimator in a panel data model with unobserved fixed effects and errors that are both serially and spatially correlated.

This paper shows that instrumental variables estimators currently in use, require strong but neglected auxiliary assumptions to be consistent in situations with partially missing instruments. We introduce an alternative instrumental variables estimator that does not require auxiliary assumptions.

We propose an alternative bivariate zero-inflated negative binomial (BZINB) regression model based on a copula. The empirical result shows that the proposed model performs better than the existing BZINB models in terms of the maximum log-likelihood and the AIC.

This paper focuses on the effects of global factors on the saving–investment relationship. We prove that, if investments and savings are affected by idiosyncratic and global components, they must be cointegrated to obtain reliable estimates of the saving-retention coefficient. When global...

We estimate the economic impact of the Italian smoking ban of 2005 on the catering sector using a quasi-experimental design. Our study indicates that the Italian smoking ban had a slight negative impact on sales of cafés and restaurants but had no effect on profits, earnings, or employment.

This paper uses high quality register-data to study the spillover effects on firstborns from having a younger sibling suffering from ADHD. Using OLS and cousin fixed effects analyses it is found that the educational outcomes of healthy firstborn children are significantly reduced by the presence...