Parameter identifiability is very useful if one wishes to make inferences in a statistical model. There are two important nonidentifiabilities in finite mixture models : boundary nonidentifiability and label nonidentifiability. Although parameters are not identifiable in the strict sense, in...

Essay 1 provides an analytical model for risk segmentation in the perfectly competitive consumer loan market by incorporating the fact that a parental durable good seller with market power to some degree in its product market can earn rents. In this context, there is a gain to granting credit...