In this paper we discuss the differences between the average marginal effect and the marginal effect of the average individual in sample selection models, estimated by Heckman's two step procedure. We show that the bias that emerges as a consequence of interchanging them, could be very...

I consider a gamble where the sum of the distributed payoffs is proportionate to the number of participants. I show that no subset of the population can agree to participate in the bet, if the size of the group is commonly known. Repeated announcements of the number of the participants leads the...

We study a model of pairwise communication in a finite population of Bayesian agents. We show that, in contrast with claims to the contrary in the existing literature, communication under a fair protocol may not lead to common knowledge of signals. We prove that commonly known signals are...

We study whether rational information processing is testable. Our main result shows that, under positive conditions, negative introspection holds if and only if it holds for primitive propositions. In particular, it is sufficient to test negative introspection on primitive propositions.<p>

This paper analyses whether individuals are influenced by the day of the week when reporting subjective well-being. By using a large panel data set and controlling for observed and unobserved individual characteristics, we find a large day-of the-week effect. Overall, we find a ‘blue’ Sunday...

We studied whether relative income has an impact on subjective well-being among extremely poor people. Contrary to the findings in developed countries, we cannot reject the hypothesis that relative income has no impact on subjective well-being in rural areas of northern Ethiopia.<p>

The earnings-assimilation of first-generation immigrant men in Sweden was analyzed using eleven waves of panel-data, 1990-2000. Employment-probabilities and earnings were estimated simultaneously in a random-effects model, using a quasifixed effects to control for both individual effects and...

The employment- and earnings-assimilation of first-generation immigrant men in Sweden was estimated using a dynamic random-e¤ects sample-selection model with eleven waves of unbalanced panel-data during 1990-2000. Endogenous initial values were controlled for using the simple Wooldridge method....

Three designs of Monte Carlo experiments are used to investigate the initial-value problem in censored dynamic random-effects (Tobit type 1) models. We compared three widely used solution methods: naive method based on exogenous initial values assumption; Heckman's approximation; and the simple...

This paper uses eleven waves of panel-data to analyse the earnings assimilation of first-generation Turkish immigrant men in Sweden. Employment-probabilities and earnings are estimated in a fixed-effects sample selection model in order to control for both individual effects and...