The ordinary least squares estimator of the effect of concentration on price is biased for two reasons. First, performance feeds back into structure, causing a simultaneous equations bias. Second, as a function of outputs or revenues, measured concentration is correlated with determinants of...

Taylor's series and logarithmic estimates of health state-dependent utility functions both imply that job injuries reduce one's utility and marginal utility of income, thus rejecting the monetary loss equivalent formulation. Injury valuations have unitary income elasticity, and the valuation of...

Research on the labor-supply consequences of childbearing is complicated by the endogeneity of fertility. This study uses parental preferences for a mixed sibling-sex composition to construct instrumental variables (IV) estimates of the effect of childbearing on labor supply. IV estimates for...

This paper examines empirically the effects of multimarket contact on pricing in the U.S. airline industry. The analysis of the time-series and cross-sectional variability of airline fares in the 1,000 largest domestic city-pair routes reveals the presence of statistically significant and...

Differences in test scores of white and black students have narrowed substantially over time, falling by one-half since 1970s. Some have speculated that this convergence is due to changes in family background or convergence in school quality. In this article we decompose the convergence in test...

Individuals or households often have some scope for choice of peer groups, whether through the selection of neighborhood of residence, school, or friends. This study addresses the estimation of peer group effects in cases in which measures of peer group influence are potentially endogenous...

In this paper, the authors consider two measures of the relative effectiveness of public and Catholic schools: finishing high school and starting college. These measures are potentially more important indicators of school quality than standardized test scores in light of the economic...

Surveys of individual's risk-dollar trade-offs illuminate not only the local trade-off rates, but also can be used to address more fundamental questions about the structure of utility functions. This largely unexplored empirical area is investigated by developing an econometric technique to...

This paper tests whether the observed dominance of most city-pair markets and airports in the U.S. domestic airline industry by single carriers confers any pricing power on the dominan t firms. The results of fixed-effects estimation indicate that airport dominance by a carrier does confer upon...