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作者：Foltyn, Richard; Olsson, Jonna
作者单位：University of Glasgow; University of Glasgow
摘要：This paper examines how objective and subjective heterogeneity in life expectancy affects savings behavior of healthy and unhealthy people. Using data from the Health and Retirement Study, we first document systematic biases in survival beliefs across self-reported health: those in poor health not only have a shorter actual lifespan but also underestimate their remaining life time. To gauge the effect on savings behavior and wealth accumulation, we use an overlapping-generations model where su...
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作者：Duarte, Marco; Magnolfi, Lorenzo; Solvsten, Mikkel; Sullivan, Christopher
作者单位：University of North Carolina; University of North Carolina Chapel Hill; University of Wisconsin System; University of Wisconsin Madison; Aarhus University
摘要：Evaluating policy in imperfectly competitive markets requires understanding firm behavior. While researchers test conduct via model selection and assessment, we present the advantages of Rivers and Vuong (2002) (RV) model selection under misspecification. However, degeneracy of RV invalidates inference. With a novel definition of weak instruments for testing, we connect degeneracy to instrument strength, derive weak instrument properties of RV, and provide a diagnostic for weak instruments by ...
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作者：Chiappori, Pierre-Andre; Ciscato, Edoardo; Guerriero, Carla
作者单位：Columbia University; KU Leuven; University of Naples Federico II
摘要：Social scientists have long been interested in marital homogamy and its relationship with inequality. However, measuring homogamy is not straightforward, particularly when one is interested in assessing marital sorting based on multiple traits. In this paper, we argue that Separate Extreme Value (SEV) models not only generate a matching function with several desirable theoretical properties, but they are also suited for the study of multidimensional sorting. Specifically, we use rich small-sca...
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作者：Hahn, Jinyong; Hughes, David W.; Kuersteiner, Guido; Newey, Whitney K.
作者单位：University of California System; University of California Los Angeles; Boston College; University System of Maryland; University of Maryland College Park; Massachusetts Institute of Technology (MIT); National Bureau of Economic Research
摘要：Bias correction can often improve the finite sample performance of estimators. We show that the choice of bias correction method has no effect on the higher-order variance of semiparametrically efficient parametric estimators, so long as the estimate of the bias is asymptotically linear. It is also shown that bootstrap, jackknife, and analytical bias estimates are asymptotically linear for estimators with higher-order expansions of a standard form. In particular, we find that for a variety of ...
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作者：Dovonon, Prosper; Gospodinov, Nikolay
作者单位：Universite de Montreal; Concordia University - Canada; Universite de Montreal; Federal Reserve System - USA; Federal Reserve Bank - Atlanta
摘要：In this paper, we study the asymptotic behavior of specification tests in conditional moment restriction models under first-order local identification failure with dependent data. More specifically, we obtain conditions under which the conventional specification test for conditional moment restrictions retains its standard normal limit when first-order local identification fails but global identification is still attainable. In the process, we derive some novel intermediate results that includ...
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作者：Gonzalez-Jimenez, Victor
作者单位：Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam
摘要：I show that stochastic contracts generate powerful incentives when agents suffer from probability distortion. When implementing these contracts, the principal can target probability distortions in order to inflate the agent's perceived benefits of exerting high levels of effort. This novel source of motivation is absent in contracts traditionally regarded as optimal. A theoretical framework and an experiment demonstrate that stochastic contracts implemented with small probabilities, which expo...
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作者：Liao, Yuan; Todorov, Viktor
作者单位：Rutgers University System; Rutgers University New Brunswick; Rutgers University Newark; Northwestern University
摘要：We develop a test for deciding whether the linear spaces spanned by the factor exposures of a large cross-section of assets toward latent systematic risk factors at two distinct points in time are the same. The test uses a panel of asset returns in local windows around the two time points. The asymptotic setup is of joint type: the number of assets and the number of return observations per asset increase asymptotically while the length of both time windows shrinks. We estimate the factor expos...
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作者：Bardhan, Pranab; Mitra, Sandip; Mookherjee, Dilip; Nath, Anusha
作者单位：University of California System; University of California Berkeley; Indian Statistical Institute; Indian Statistical Institute Kolkata; Boston University; Federal Reserve System - USA; Federal Reserve Bank - Minneapolis
摘要：Using rural household survey data from West Bengal, we find that voters respond positively to excludable government welfare benefits but not to local public good programs, while reporting having benefited from both. Consistent with these voting patterns, shocks to electoral competition induced by exogenous redistricting of villages resulted in upper-tier governments manipulating allocations across local governments only for excludable benefit programs. Using a hierarchical budgeting model, we ...
