This paper merges two isolated bodies of literature: the Markov chain model with macro data (MacRae, 1977) and the ecological inference model (Robinson, 1950). Both are choice models. They have the same likelihood function and the same regression equation.Decades ago, this likelihood function...

The coming energy transition in residential neighbourhoods is the result of the increasing cost of CO2 emission and the decreasing costs of solar PhotoVoltaics (PV) and alternative techniques of residential heating, namely Combined Heat and Power (CHP) and heat pump. The optimal transition is...

This paper discusses a widely used discrete-time analog of dynamic continuous-time models. This analog can not be used for the estimation of models with fast adaption to shocks. This has been overlooked in the econometric literature. In the engineering literature this same analogon is defined,...

A simple model of "hourglass" problems is presented. For such problems, the benefit of a national policy measure is propagated to all countries through one single world-wide variable. The prime example is the effect of the reduction of CO2 emission on the world climate.Five optimal solutions are...

This CPB Discussion Paper merges two isolated bodies of literature: the Markov chain model with macro data (MacRae, 1977) and the ecological inference model (Robinson, 1950). Both are choice models. They have the same likelihood function and the same regression equation. Decades ago, this...

Mirror data are observations of bilateral variables such as trade from one country to another, reported by both countries. The efficient estimation of a bilateral variable from its mirror data, for example when compiling consistent international trade statistics, requires information about the...