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Econometric Literature (econometric + literature)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	50%

Selected Abstracts

Structural Equations, Treatment Effects, and Econometric Policy Evaluation1

ECONOMETRICA, Issue 3 2005
James J. Heckman
This paper uses the marginal treatment effect (MTE) to unify the nonparametric literature on treatment effects with the econometric literature on structural estimation using a nonparametric analog of a policy invariant parameter; to generate a variety of treatment effects from a common semiparametric functional form; to organize the literature on alternative estimators; and to explore what policy questions commonly used estimators in the treatment effect literature answer. A fundamental asymmetry intrinsic to the method of instrumental variables (IV) is noted. Recent advances in IV estimation allow for heterogeneity in responses but not in choices, and the method breaks down when both choice and response equations are heterogeneous in a general way. [source]

Differential impact of state tobacco control policies among race and ethnic groups

ADDICTION, Issue 2007
John A. Tauras
ABSTRACT Aims This paper describes patterns of racial and ethnic cigarette use in the United States and discusses changes in state-level tobacco control policies. Moreover, this paper reviews the existing econometric literature on racial and ethnic smoking and discusses the limitations of that research. Finally, this paper outlines an agenda for future research. Methods Patterns of racial and ethnic smoking and changes in state-level tobacco control policies in the United States were obtained from a variety of sources, including surveys and government and private documents and databases. After an extensive literature search was completed, the existing research was scrutinized and recommendations for much-needed future research were put forth. Findings Despite the fact that certain racial and ethnic minorities bear a disproportionate share of the overall health burden of tobacco, less than a handful of econometric studies have examined the effects of state-level public policies on racial and ethnic smoking. The existing literature finds Hispanics and African Americans to be more responsive to changes in cigarette prices than whites. Only one study examined other state-level tobacco policies. The findings from that study implied that adolescent white male smoking was responsive to changes in smoke-free air laws, while adolescent black smoking was responsive to changes in youth access laws. Conclusions While much has been learned from prior econometric studies on racial and ethnic smoking in the United States, the existing literature suffers from numerous limitations that should be addressed in future research. Additional research that focuses on races and ethnicities other than white, black and Hispanic is warranted. Furthermore, future studies should use more recent data, hold sentiment toward tobacco constant and control for a comprehensive set of tobacco policies that take into account not only the presence of the laws, but also the level of restrictiveness of each policy. [source]

Localised knowledge spillovers vs. innovative milieux: Knowledge "tacitness" reconsidered

PAPERS IN REGIONAL SCIENCE, Issue 3 2001
Stefano Breschi
Innovative milieux; regional systems; nkowledge spillovers; externalities; industrial districts Abstract. This article provides a critical discussion of the recent econometric literature on "localised knowledge spillovers" and the related notion of tacit knowledge. The basic claim of the article is that the increasing, and more or less automatic reliance of industrial geographers upon such econometric evidence and theoretical concepts to support their work on industrial districts, hi-tech agglomerations and, more broadly, local innovation systems is not well placed and risks to generate conceptual confusion and to distort research agendas. Following some recent advances in the economics of knowledge, the article also suggests that more research efforts should instead be devoted to exploring how knowledge is actually transmitted, among whom, at what distance, and on the basis of which codebooks. [source]

Illiquidity and Pricing Biases in the Real Estate Market

REAL ESTATE ECONOMICS, Issue 3 2007
Zhenguo Lin
This article addresses the micro-analytic foundations of illiquidity and price dynamics in the real estate market by integrating modern portfolio theory with models describing the real estate transaction process. Based on the notion that real estate is a heterogeneous good that is traded in decentralized markets and that transactions in these markets are often characterized by costly searches, we argue that the most important aspects defining real estate illiquidity in both residential and commercial markets are the time required for sale and the uncertainty of the marketing period. These aspects provide two sources of bias in the commonly adopted methods of real estate valuation, which are based solely on the prices of sold properties and implicitly assume immediate execution. We demonstrate that estimated returns must be biased upward and risks downward. These biases can be significant, especially when the marketing period is highly uncertain relative to the holding period. We also find that real estate risk is closely related to investors' time horizons, specifically that real estate risk decreases when the holding period increases. These results are consistent with the conventional wisdom that real estate is more favorable to long-term investors than to short-term investors. They also provide a theoretical foundation for the recent econometric literature, which finds evidence of smoothing of real estate returns. Our findings help explain the apparent risk-premium puzzle in real estate,that is, that ex post returns appear too high, given their apparent low volatility,and can lead to the formal derivation of adjustments that can define real estate's proper role in the mixed-asset portfolio. [source]