While fertility is positively correlated across generations, the causal effect of children's experience with larger sibships on their own fertility in adulthood is poorly understood. Using the sex composition of the two first-born children as an instrumental variable, we estimate the effect of...

In this paper we give simple proofs of identification results in discrete choice models for the case where neither the deterministic part nor the distribution function of the random parts of the utility function is specified parametrically. The regularity conditions imposed are standard, but...

A discrete choice model for labor supply and child care for mothers of preschoolers is presented. The mothers are assumed to make choices from a finite set of job possibilities and from a finite set of child care options. The options in the markets for child care are characterized by opening...

In this paper we analyze the decision of "working" versus "not working" within a discrete choice framework, where number of available jobs is confined and related to individual characteristics. In this way the market constraint from the demand side is taken into account. We also accommodate the...

Amartya Sen has developed the so-called capability approach to meet the criticism that income alone may be insufficient as a measure of economic inequality. This is because knowledge about people’s income does not tell us what they are able to acquire with that income. For example, people with...

The interpretation of instrumental variables (IV) estimates as local average treatment effects (LATE) of instrument-induced shifts in treatment raises concerns about their external validity and policy relevance. We examine how to move beyond LATE in situations where the instrument is discrete,...

This paper discusses the construction and computation of a quality adjusted price index when the commodities are differentiated products, such as different brands of automobiles and refrigerators. The method we focus on is an extension of Trajtenberg’s approach. A key result obtained in the...

This paper develops a theory for probabilistic models for risky choices that can be viewed as an extension of the expected utility theory to account for bounded rationality. One probabilistic version of the Archimedean Axiom and two versions of the Independence Axiom are proposed. In addition,...

This paper analyzes travelers’ choice behavior by using data from a stated preference survey on work-trip mode choice in Shanghai. Several versions of a multinomial choice model are specified and estimated. According to the estimation results the utility function with money cost divided by...

This paper discusses the problem of specifying probabilistic models for choices (strategies) with uncertain outcomes. The point of departure is an extension of the axiom system of the von Neumann-Morgenstern Expected utility theory to the case when the preferences are stochastic. This extended...