This paper develops a new concept of separability with overlapping groups—latent separability. This is shown to provide a useful empirical and theoretical framework for investigating the grouping of goods and prices. It is a generalization of weak separability in which goods are allowed...

The purpose of this paper is to study the trade-off between purchases and home production of food. We develop a simple household production model which predicts a zero elasticity of home production with respect to total expenditure. Focusing on vegetables, we use data from the 1991 French...

In this paper we study household purchase behaviour of storable food products. An inventory model is developed in which the household chooses an optimal stock level of the product. Storage of the product is costly, there is a fixed cost per purchase occasion, and the market price is sometimes...

In this article we develop an equilibrium search model with a continuous distribution of firm productivity types within a given labor market. We characterize equilibrium, derive expressions for the endogenous equilibrium wage distributions, and characterize the set of wage distributions that can...

In this paper we consider a joint model for frequency of purchase and consumer demand. We discuss sufficient identifying assumptions for the estimation of consumer demands from survey data for the general case of nonlinear (or linear) Engel curves. Moreover we show that in many cases the actual...

In this paper we present and estimate a synthesis of previous equilibrium search models: allowing for continuous distributions of workers opportunity costs of employment, as well as firms’ productivities. The model allows for on-the-job search, and we assume that job offer arrival rates for...

We study the treatment effect of grade retention, using a panel of French junior highschool students, taking unobserved heterogeneity and the endogeneity of grade repetitions into account. We specify a multi-stage model of human-capital accumulation with a finite number of types representing...

It is often argued that informal labour markets in developing countries are the engine of growth because their existence allows firms to operate in an environment where wage and regulatory costs are lower. On the other hand informality means that the amount of social protection offered to...

In this paper, we build a model of earnings dynamics and estimate it on a representative three-year panel, the French Labour Force Survey. We use the model to simulate individual earnings trajectories beyond the period of observation, and to compute permanent income values. We measure the ratio...