From questionnaire data it is evident that the number of alternatives unemployed workers consider, i.e. their choice set size, varies substantially. A binomial model is formulated for choice set size, where individual characteristics are used as explanatory variables for observed large variation...

When modelling demand for addictive consumption goods, the most widely used framework is the rational addiction model proposed by Becker and Murphy. This paper extends the rational addiction model to include two addictive consumption goods, alcohol and cigarettes, and using aggregate annual time...

We regard individual unemployment duration as an important determinant of individuals’ welfare dependence. Welfare receipt is modelled for a unique data set of 4,655 Finnish unemployed individuals. A two-stage binomial hurdle model is applied, and estimations are made by both ML and GMM....