We consider a random utility model of strategic network formation, where we derive a tractable approximation to the distribution of network links using many-player asymptotics. Our framework assumes that agents have heterogeneous tastes over links, and allows for anonymous and non-anonymous interaction effects among links. The observed network is assumed to be pairwise stable, and we impose no ...

This paper analyzes the impact of the skill composition of the working labor force on the innovative activity of firms when there is both an imperfect labor market and monopolistic competition on the product market. The labor market imperfections arise through a kind of insider outsider mechanism where in the bargaining round the union attaches a greater weight to the wage and employment intere...

We run a regression discontinuity design analysis to document the causal effect of increasing buyers’ discretion on procurement outcomes in a large database for public works in Italy. Works with a value above a given threshold have to be awarded through an open auction. Works below this threshold can be more easily awarded through a restricted auction, where the buyer has some discretion in ter...

Misspecification Testing in a Class of Conditional Distributional Models We propose a specification test for a wide range of parametric models for the conditional distribution function of an outcome variable given a vector of covariates. The test is based on the Cramer-von Mises distance between an unrestricted estimate of the joint distribution function of the data, and a restricted estimate t...

Does Increasing Parents’ Schooling Raise the Schooling of the Next Generation? Evidence Based on Conditional Second Moments This paper investigates the degree of intergenerational transmission of education for individuals from the National Longitudinal Survey of Youth 1979. Rather than identifying the causal effect of parental education via instrumental variables we exploit the feature of the t...

This paper employs the Ordinary Least Squares, Instrumental Variables and Treatment Effect models to a new dataset from the Vietnam Household Living Standards Survey (VHLSS) to estimate return to four-year university education in 2008. Our estimates reveal that income premium of four-year university education is about 97 percent above that of high school education, and robust to the various est...

Two econometric issues arise in the structural estimation of consumer or producer demand systems in the presence of many binding non-negativity constraints. First, most existing methods entail the evaluation of multivariate probability integrals. Second, the issue of statistical coherency must be addressed. We circumvent both of these issues using Gibbs Sampling, along with data augmentation an...

The distributions of income and wealth in countries across the world are found to possess some robust and stable features independent of the specific economic, social and political conditions of the countries. We discuss a few physics-inspired multiagent dynamic models along with their microeconomic counterparts, that can produce the statistical features of the distributions observed in reality...

abstract by using cross-section data which gathered through a survey research in mashhad ,contingent valuation approach and tobit model this study tries to determine economical value of air pollution and effective factors on wtp. based on contingent valuation approach, air pollution total value of airpollution in high-polluted region equals 7134146560 rials per month and in middle-polluted regi...

JEL Classification Code(s): J 31, J 71) "Perceptions of Discrimination, Effort to Obtain Psychological Balance, and Relative Wages: Can We Infer a Happiness Gradient?" There is a substantial literature that finds a linkage between happiness and relative economic well being as measured by earnings or wages. There is also a well documented racial gap in wages. One explanation for this is disparat...