This paper compares technologies across space and time on the basis of factual and counterfactual substitution elasticities and argues that differences in estimated substitution elasticities should be decomposed into two counterfactual components. While the first component is designed to indicate how the ease of substitution is altered by varied economic circumstances, the second addresses the ...

In specifications of tastes and technology, econometricians often impose curvature globally, but monotonicity only locally or not at all. In fact monotonicity rarely is even mentioned in that literature. But without satisfaction of both curvature and monotonicity, the second order conditions for optimizing behavior fail, and duality theory fails. The resulting first order conditions, demand fun...

In an effort to further understanding of the “alcohol/income puzzle” — the finding that moderate and perhaps even heavy drinking appears to cause increased income — this paper presents maximum simulated likelihood estimates of a system of limited dependent variables governing smoking and drinking patterns and income. With all else in the system held constant, moderate drinking leads to 10% grea...

Estimating the degree of substitution between energy and non-energy inputs is key for any evaluation of environmental and energy policies. Yet, given the large variety of substitution elasticities, the central question arises as to which measure would be most appropriate. Apparently, ALLEN’s elasticities of substitution have been the most-used measures in applied production analysis. In line wi...

NATO members have been coping with low motivation and morale. Such environments typically high turnover intentions neglect behavior. However, safety behavior is paramount for military organizations can serious consequences. Social exchanges are often cited as the main reason these phenomena. We therefore examine compliance of 1,593 airmen from a European Air Force by focusing on different psych...

This paper investigates the impact of foreign direct investment (FDI) and corruption on environmental pollution in Tunisia over period 1984–2014 by applying an autoregressive distributed lag model. Our results revealed existence Environmental Kuznets Curve Tunisian case. The haven hypothesis postulates that polluting industrial activity developed countries is shifting to developing with less st...

School Effects and Labor Market Outcomes for Young Adults in the 1980s and 1990s This study examines high school effects on the labor market success of young adults, above and beyond individual and family characteristics. We employ data from two longitudinal, nationally probability samples: the National Longitudinal Study and the High School and Beyond study and the 5th and 4th follow-up studie...

This paper studies a discrete-time financial model with or without transaction costs, in which only partial information can be observed. Partial information model means that the investors in the market can observe no more information except the stock prices. This model has been investigated in Karatzas and Xue (1991), Lakner (1995, 1998), and Cheng (2004), etc. Applying stochastic filtering the...

In this paper we examine long-run house price convergence across US states using a novel econometric approach advocated by Pesaran (2007) and Pesaran et al. (2009). Our empirical modelling exercise employs a probabilistic test statistic for convergence based on the percentage of unit root rejections among all state house price differentials. Using a sieve bootstrap procedure, we construct confi...

Estimating the degree of substitution between energy and non-energy inputs is key for any evaluation of environmental and energy policies. Yet, given the large variety of substitution elasticities, the central question arises as to which measure would be most appropriate. Apparently, ALLEN’s elasticities of substitution have been the most-used measures in applied production analysis. In line wi...