Although the neoclassical labor economics literature assumes that hours of work are determined solely on the supply side as a result of individual demand for leisure, and abundance of evidence points to the importance of employer demand factors in the market for hours of work. Despite the appeal...

In this paper we describe methods for obtaining the predictive distributions of outcome gains in the framework of a standard latent variable selection model. While most previous work has focused on estimation of mean treatment parameters as the method for characterizing outcome gains from...

Chib and Hamilton (2000) discuss Bayesian estimation of treatment response models subject to the restriction that the cross-regime correlation parameter is zero. This note points out important consequences of that restriction, and argues that the range of applicability of such an approach is...

We propose that people value not only the goods they consume, but also their freedom, which increases with the number of bundles their budget allows them to buy. We apply this idea to show that citizens may favor proportional taxes over lump-sum taxes, progressive taxes over proportional taxes,...

To begin discussing the classical liberal and realist views we analyze a simple model that allows for possible insecurity as well as trade. We examine an economic environment in which two "small" countries dispute a resource that can be used in the production of tradeables. Claims on the...

This paper develops new Bayesian methods for semiparametric inference in the partial linear Normal regression model. These methodes draw solely on teh Normal linear regression model with natural conjugate prior. Hence, analytical finite sample results are available which do not suffer form...

People who suffer disutility from making mistakes may prefer to face consumption choices which reduce their chances of making mistakes. One consequence is that a firm may attract greater demand by charging a single price for different goods than by charging different prices for different goods.

Achieving peace and building the institutions that will make it last require much time and effort on the part of adversaries. While making this effort, the likelihood of peace is uncertain and preparations for confict are on-going. We examine a setting that takes such considerations into...

Consider a principal who appoints an agent. Let the agent potentially serve for a sufficiently long time that one principal is replaced by another over this period. Suppose also that the quality of the agent appointed increases with the effort the incumbent principal devotes to hiring. Then the...

Consider team production with two people. Each person is characterized by a prior distribution that he will do Right or Wrong. After the outcome of the project is observed, these probabilities are updated. When output depends on the weakest link in production, following project failure the...