I characterize how house price shocks affect consumption inequality using a life-cycle model of housing and non-housing consumption with incomplete markets.
We consider a situation where the distribution of a random variable is being estimated by the empirical distribution of noisy measurements of that variable.
Economists are often interested in estimating averages with respect to distributions of unobservables. Examples are moments of individual fixed-effects, average effects in discrete choice models, or counterfactual simulations in structural models.
Much of lifetime healthcare spending is concentrated at the end of life. This paper uses survey data linked to administrative hospital and mortality records to examine how the pattern of end-of-life hospital inpatient spending varies across different groups within a large public hospital system in England.
Do tax systems distort firm-to-firm trade? Using data from both firms that do and don’t pay VAT in West Bengal in India, this paper shows that they can have significant effects, contributing to highly segmented supply chain networks.
This chapter sets out the extension of the scope of the classical IV model to cases in which unobserved variables are set-valued functions of observed variables.
The instrumental variable quantile regression (IVQR) model (Chernozhukov and Hansen, 2005) is a popular tool for estimating causal quantile e_ects with endogenous covariates. However, estimation is complicated by the non-smoothness and non-convexity of the IVQR GMM objective function.
This paper studies the properties of the wild bootstrap-based test proposed in Cameron et al. (2008) for testing hypotheses about the coeffcients in a linear regression model with clustered data.
We study nonparametric estimation of density functions for undirected dyadic random variables (i.e., random variables defined for all n def = (N/2) unordered pairs of agents/nodes in a weighted network of order N).
A policy of forward guidance has been suggested either as a form of commitment (“Odyssean”) or as a way of conveying information to the public (“Delphic”).
We develop methods for robust Bayesian inference in structural vector autoregressions (SVARs) where the impulse responses or forecast error variance decompositions of interest are set-identified using external instruments (or ‘proxy SVARs’).
Individuals may be poor even if their household is not poor, because the intra-household distribution of resources may be unequal. We develop a model wherein the resource share of each person in a collective household - defined as their share of household consumption - may be estimated by simple linear regressions using off-the-shelf consumer expenditure micro-data.
We propose a robust method of discrete choice analysis when agents’ choice sets are unobserved. Our core model assumes nothing about agents’ choice sets apart from their minimum size.
The vast majority of household wealth in the U.S. is held in illiquid assets, primarily housing, making households vulnerable to unexpected income shocks. To rationalize this preference for illiquidity, we build a life-cycle model where households are tempted to consume their liquid wealth but can use illiquid housing as a savings commitment device.
Building on early animal studies, 20th-century researchers increasingly explored the fact that early events – ranging from conception to childhood – affect a child’s health trajectory in the long-term. By the 21st century, a wide body of research had emerged, incorporating the original ‘Fetal Origins Hypothesis’ into the ‘Developmental Origins of Health and Disease’.
Researchers are often interested in the relationship between two variables, with no single data set containing both. For example, surveys on income and wealth are often missing consumption data.
This paper develops identification and estimation methods for dynamic structural models when agents’ actions are unobserved by econometricians. We provide conditions under which choice probabilities and latent state transition rules are nonparametrically identified with a continuous state variable in a single-agent dynamic discrete choice model.
This paper estimates flexible child health production functions to investigate whether better water, sanitation and hygiene (WASH) practices make nutrition intake more productive for children aged 6-24 months.
A substantial body of research on the UK’s National Minimum Wage (NMW) has concluded that the the NMW has not had a detrimental effect on employment. This research has directly influenced, through the Low Pay Commission, the conduct of policy, including the subsequent introduction of the National Living Wage (NLW).
