Traditional tools of welfare economics identify the envy-related welfare loss from conspicuous consumption only under very strong assumptions. Measured income and life satisfaction offers an alternative for estimating such consumption externalities. The approach is developed in the context of...

The bivariate probit model is frequently used for estimating the effect of an endogenous binary regressor (the "treatment") on a binary health outcome variable. This paper discusses simple modifications that maintain the probit assumption for the marginal distributions while introducing...

When a sample combines data from two or more groups, multivariate regression yields a matrix-weighted average of the group-specific coefficient vectors. However, it is possible that the weighted average of a specific coefficient falls outside the range of the group-specific coefficients, and it...

This paper explores an algebraic relationship between two types of coefficients for a regression with several predictors and a group structure. In a general regression, the regression coefficients are allowed to be group-specific, the restricted regression imposes constant coefficients. The key...

This paper explores an algebraic relationship between two types of coefficients for a regression with several predictors and an additive binary group variable. In a general regression, the regression coefficients are allowed to be group-specific, the restricted regression imposes constant...

Regression models for proportions are frequently encountered in applied work. The conditional expectation is bound between 0 and 1 and, therefore, must be non-linear which requires non-standard panel data extensions. The quasi-maximum likelihood estimator of Papke and Wooldridge (1996) suffers...

From 2004 to 2012, the German social health insurance levied a co-payment for the first doctor visit in a calendar quarter. We develop a new model for estimating the effect of such a co-payment on the individual number of visits per quarter. The model allows for a one time increase in the...

Regression models for proportions are frequently encountered in applied work. The conditional expectation function is bounded between 0 and 1 and therefore must be non-linear, requiring nonstandard panel data extensions. One possible approach is the binomial panel logit model with fixed effects...

The paper reconsiders existing estimators for the panel data fixed effects ordered logit model, including one that has not been used in econometric studies before, and studies the small sample properties of these estimators in a series of Monte Carlo simulations. There are two main findings....

The paper re-examines existing estimators for the panel data fixed effects ordered logit model, proposes a new one, and studies the sampling properties of these estimators in a series of Monte Carlo simulations. There are two main findings. First, we show that some of the estimators used in the...