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Structural Estimation (structural + estimation)
Selected AbstractsTHE GRAVITY MODEL: AN ILLUSTRATION OF STRUCTURAL ESTIMATION AS CALIBRATIONECONOMIC INQUIRY, Issue 4 2008EDWARD J. BALISTRERI Dawkins, Srinivasan, and Whalley ("Calibration,"Handbook of Econometrics, 2001) propose that estimation is calibration. We illustrate their point by examining a leading econometric application in the study of international and interregional trade by Anderson and van Wincoop ("Gravity with Gravitas: A Solution to the Border Puzzle,"American Economic Review, 2003). We replicate the econometric process and show it to be a calibration of a general equilibrium model. Our approach offers unique insights into structural estimation, and we highlight the importance of traditional calibration considerations when one uses econometric techniques to calibrate a model for comparative policy analysis. (JEL F10, C13, C60) [source] The Hazard Rate of Foreign Direct Investment: A Structural Estimation of a Real-option Model,OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 5 2006Enrico Pennings Abstract The hazard rate of investment is derived within a real-option model, and its properties are analysed so as to directly study the relation between uncertainty and investment. Maximum likelihood estimates of the hazard are calculated using a sample of multinational enterprises (MNEs) that invested in Central and Eastern Europe over the period 1990,98. Employing a standard, non-parametric specification of the hazard, our measure of uncertainty has a negative effect on investment, but the reduced-form model is unable to control for nonlinearities in the relationship. The structural estimation of the option-based hazard is instead able to account for the nonlinearities and exhibits a significant value of waiting, although the latter is independent of our measure of uncertainty. This finding supports the existence of alternative channels through which uncertainty can affect investment. [source] ON-THE-JOB SEARCH, PRODUCTIVITY SHOCKS, AND THE INDIVIDUAL EARNINGS PROCESS,INTERNATIONAL ECONOMIC REVIEW, Issue 3 2010Fabien Postel-Vinay Individual labor earnings observed in worker panel data have complex, highly persistent dynamics. We investigate the capacity of a structural job search model with on-the-job search, wage renegotiation by mutual consent, and i.i.d. productivity shocks to replicate salient properties of these dynamics, such as the covariance structure of earnings, the evolution of individual earnings mean, and variance with the duration of uninterrupted employment, or the distribution of year-to-year earnings changes. Structural estimation of our model on a 12-year panel of highly educated British workers shows that our simple framework produces a dynamic earnings structure that is remarkably consistent with the data. [source] Piece Rates, Fixed Wages, and Incentive Effects: Statistical Evidence from Payroll RecordsINTERNATIONAL ECONOMIC REVIEW, Issue 1 2000Harry J. Paarsch We develop and estimate an agency model of worker behavior under piece rates and fixed wages. The model implies optimal decision rules for the firm's choice of a compensation system as a function of working conditions. Our model also implies an upper and lower bound to the incentive effect (the productivity gain realized by paying workers piece rates rather than fixed wages) that can be estimated using regression methods. Using daily productivity data collected from the payroll records of a British Columbia tree-planting firm, we estimate these bounds to be an 8.8 and a 60.4 percent increase in productivity. Structural estimation, which accounts for the firm's optimal choice of a compensation system, suggests that incentives caused a 22.6 percent increase in productivity. However, only part of this increase represents valuable output because workers respond to incentives, in part, by reducing quality. [source] Structural estimation of particle arrays at air,water interface based on silica particles with well-defined and highly grafted poly(methyl methacrylate)POLYMER ENGINEERING & SCIENCE, Issue 6 2010Jung-Min Moon Silica nanoparticles with well-defined, highly grafted dense poly(methyl methacrylate) (MMA) were prepared by surface-initiated activators regenerated by electron transfer for atom transfer radical polymerization (ARGET ATRP) of methyl methacrylate with an initiator-fixed silica particle in the presence of air. Two different polymerizations of MMA were carried out under the same conditions using tris[2-(dimethylamino)ethyl]amine (Me6TREN) and N,N,N,,N,,N,-pentamethyldiethylene-triamine (PMDETA) as the ligand, respectively. In the CuCl2/PMDETA system, polymerization appeared to be more controlled with a lower polydisperisty compared with the CuCl2/Me6TREN system. The monolayer of these particles was formed at the air,water interface using Langmuir-Blodgett (LB) technique. Multilayers of the particles were fabricated by repetition of LB depositing. A surface pressure,area (,,A) measurement and SEM observation were used to characterize the particle arrays. POLYM. ENG. SCI., 2010. © 2009 Society of Plastics Engineers [source] Structural Equations, Treatment Effects, and Econometric Policy Evaluation1ECONOMETRICA, Issue 3 2005James 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] THE GRAVITY MODEL: AN ILLUSTRATION OF STRUCTURAL ESTIMATION AS CALIBRATIONECONOMIC INQUIRY, Issue 4 2008EDWARD J. BALISTRERI Dawkins, Srinivasan, and Whalley ("Calibration,"Handbook of Econometrics, 2001) propose that estimation is calibration. We illustrate their point by examining a leading econometric application in the study of international and interregional trade by Anderson and van Wincoop ("Gravity with Gravitas: A Solution to the Border Puzzle,"American Economic Review, 2003). We replicate the econometric process and show it to be a calibration of a general equilibrium model. Our approach offers unique insights into structural estimation, and we highlight the importance of traditional calibration considerations when one uses econometric techniques to calibrate a model for comparative policy analysis. (JEL F10, C13, C60) [source] Party loyalty as habit formationJOURNAL OF APPLIED ECONOMETRICS, Issue 3 2003Ron Shachar In most democracies, at least two out of any three individuals vote for the same party in sequential elections. This paper presents a model in which vote-persistence is partly due to the dependence of the utility on the previous voting decision. This dependence is termed ,habit formation'. The model and its implications are supported by individual-level panel data on the presidential elections in the USA in 1972 and 1976. For example, it is found that the voting probability is a function of the lagged choice variable, even when the endogeneity of the lagged variable is accounted for, and that the tendency to vote for different parties in sequential elections decreased with the age of the voter. Furthermore, using structural estimation the effect of habit is estimated, while allowing unobserved differences among respondents. The structural habit parameter implies that the effect of previous votes on the current decision is quite strong. The habit model fits the data better than the traditional ,party identification' model. Copyright © 2003 John Wiley & Sons, Ltd. [source] | ||||||||||||||||||||||