Higher-order discrete dynamic systems arise naturally in many economic models in which the problem at hand requires an explicit treatment of dynamics involving lags of more than one period. In studying such models, one type of analysis that economists are often interested in is the assessment of the signs and the magnitudes of the e!ects of a change in the parameters of the dynamic system on th...

In the information age, lters are going to play a dominant role. Isolated lters are incapable of dealing with a large number of incoming documents. Collaborative ltering creates a symbiosis of information ltering and web based technologies. However, collaboration has associated costs. Each service ooered and provided by a lter must be appropriately compensated. Here we present two economic mode...

De Finetti’s Theorem asserts that a sequence of exchangeable variables are conditionally independent, that is, dependence under exchangeability is nothing but conditionally independence. However, de Finetti’s theorem is valid only with a infinite number of random variables, which makes this result unsuitable for application in many economic models. In this paper, we prove that dependence is con...

is called the sign pattern of A, where sgn(x) = −1, 0, 1 when x <,=, > 0 respectively. A matrix with −1, 0, 1 entries is also called a sign pattern matrix. The concept of sign pattern matrix first appeared in Paul A. Samuelson’s book [24], and it was related to the stability problem in economic models. Later on, additional applications for the sign pattern matrix have been found. Since the 1990...

Although traditional economic models posit that money is fungible, psychological research abounds with examples that deviate from this assumption. Across eight experiments, we provide evidence that people construe physical currency as carrying traces of its moral history. In Experiments 1 and 2, people report being less likely to want money with negative moral history (i.e., stolen money). Expe...

This paper is a revised version of a keynote address delivered at the inaugural International Industrial Organization Conference in Boston, April 2003. I argue that new econometric tools have facilitated the estimation of models with realistic theoretical underpinnings, and because of this, have made empirical I.O. much more useful. The tools solve computational problems thereby allowing us to ...

Modernizing manufacturing and IT systems are paths industry leaders and regulators believe can result in safe, affordable, and efficacious drugs, but small improvements may not be enough. Biopharmaceutical companies are facing multiple challenges including increasing development costs, shifting outcomes-based economic models, and ever evolving global compliance needs. To combat these challenges...

Standard economic models tend to be more speci…c about pecuniary payo¤s than non-pecuniary payo¤s to education. Based on Akerlof and Kranton (2000), we consider a model of career choice and identity where individuals derive nonpecuniary identity payo¤s. Using factor analysis on a range of attitude questions, we …nd two factors related to identity (career orientation and social orientation), whi...

While economic models are a useful tool to aid decision-making in healthcare, there remain several types of uncertainty associated with this method of analysis. G One-way sensitivity analysis allows a reviewer to assess the impact that changes in a certain parameter will have on the model's conclusions. G Sensitivity analysis can help the reviewer to determine which parameters are the key drive...

Although non-R&D innovation activities account for a significant portion of innovation efforts carried out across very heterogeneous economies in Europe, how to incorporate them in to economic models is not always straightforward. For instance, the traditional macro approach to estimating the determinants of total factor productivity (TFP) does not handle them well. To counter these problems, t...