In many traditional financial and economic models, economic agents are assumed to make decisions using expected lifetime utility under rational expectations, where rational expectations are assumed to be formed on the basis of sufficient knowledge of the data generating process. But the mere...

Microscopic simulation models are often evaluated based on visual inspection of the results. This paper presents formal econometric techniques to compare microscopic simulation (MS) models with real-life data. A related result is a methodology to compare different MS models with each other. For...

Attitudes towards risk play a major role in many economic decisions. In empirical studies one quite often assumes that attitudes towards risk do not vary across individuals. This papers questions this assumption and analyses which factors influence an individual's risk attitude. Based on...

Household equivalence scales are not identified from consumer demand data alone. We estimate household equivalence scales using two types of subjective information. First, we use the answers to questions on the income required to attain a given utility level. This is the type of information...

A new semiparametric estimator for the censored regression panel data model with fixed effects is introduced. It is based upon an estimator proposed by Honore for the case of two time periods combined with ideas of Newey to improve the efficiency. The estimator is more efficient than Honore's...

Empirical implementation of labour supply theories is usually based on realized labour market behaviour. This requires strong assumptions about the impact of labour demand. A possibility to avoid these assumptions is to make use of subjective data on desired labour supply. In this paper we...

Microeconomic surveys are usually subject to the problem of item nonresponse, typically associated with variables like income and wealth, where confidentiality and/or lack of accurate information can affect the response behavior of the individual. Follow up categorical questions can reduce item...

Item nonresponse in micro surveys can lead to biased estimates of the parameters of interest if such nonresponse is nonrandom. Selection models can be used to correct for this, but parametric and semiparametric selection models require additional assumptions. Manski has recently developed a new...