Some Thoughts on Macroeconomic Fluctuations and the Timing of Labor Market Reform In this paper, I analyze the pros and cons of implementing structural reforms of the labor market in booms vs. recessions, in light of considerations of social efficiency, political viability, and macroeconomic fine tuning. While the optimal timing of a reform depends on the relative importance of several conflict...

We propose a general framework for analyzing structural limited dependent variable models where an endogenous regressor is also limited in range. A copula-based modeling of structural joint distributions permits us to implement a full information maximum likelihood estimation of parameters. We apply this modeling strategy to the March 1992 and 2002 CPS data for estimating the average partial ef...

Heterogeneity in Risky Choice Behaviour in a Broad Population We analyse risk preferences using an experiment with real incentives in a representative sample of 1,422 Dutch respondents. Our econometric model incorporates four structural parameters that vary with observed and unobserved characteristics: Utility curvature, loss aversion, preferences towards the timing of uncertainty resolution, a...

This paper investigates empirically the interrelationships between the daily stock market returns of the Nikkei 225, DAX and Dow Jones Industrial index. Contrary to former work this paper uses the succession of the markets in time to form different econometric models. In this way it is possible to detect causality not only from the US to foreign countries but in some cases vice versa. The obser...

The correspondence principle suggests a link between asymptotic stability properties of equilibria of economic models and the equilibrium response to data that describe the model or the model environment. However, this link has been impaired by a logical-mathematical deficiency. This paper, by introducing a conceptual requirement of (local) structural stability as part of the principle hypothes...

Abstract A trivial case in input–output structural decomposition analysis is a of product variables, or factors, where one factor an inverse—typically, Leontief inverse—of sum other factors. There may be dozens and hundreds such factors that describe the changes subsets technical coefficients. The existing literature offers ambiguous guidance this case. solution consistent with index number the...

Given a Markovian Brownian martingale Z, we build a process X which is a martingale in its own filtration and satisfies X1 = Z1. We call X a dynamic bridge, because its terminal value Z1 is not known in advance. We compute explicitly its semimartingale decomposition under both its own filtration FX and the filtration FX,Z jointly generated by X and Z. Our construction is heavily based on parabo...