The linear statistical model provides a flexible approach to quantifying the relationship between a set of real-valued input variables and a real-valued response. A scientifically relevant goal is to determine which input variables have only a minor effect, or no effect, on the response. We show how this decision can be framed as an estimation problem by defining a bias parameter for the linear...

I construct a model of an asset market subject to search frictions, in an environment where both asset liquidity and market composition are determined endogenously. The analysis predicts that higher asset prices resulting from exogenously higher asset earnings imply: (i) a shorter search duration for sellers (higher liquidity), (ii) a shorter owner tenure before listing assets for resale (turno...

A number of studies have indicated that peer smoking is a highly influential factor in a youth’s decision to smoke. However, these results are suspect because the studies often fail to account for selection and simultaneity bias. This paper develops an econometric model of youth smoking which incorporates both peer effects and selection effects. Identification is achieved by using the degree of...

In this study, we analyzed age variation in the association between obesity status and US adult mortality risk. Previous studies have found that the association between obesity and mortality risk weakens with age. We argue that existing results were derived from biased estimates of the obesity-mortality relationship because models failed to account for confounding influences from respondents’ a...