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Disability and Work: the Role of Health Shocks and Childhood Circumstances

Lindeboom, Maarten; Nozal, Ana Llena; Klaauw, Bas van der - Tinbergen Institute - 2006

This paper focuses on the relation between the onset of disability and employment outcomes. We develop an event history … onset of a disability by around 138%. However, health shocks are relatively rare events and therefore the larger part of … observed disability rates result from gradual deteriorations in health. We find no direct effect of health shocks on employment …

Persistent link: https://www.econbiz.de/10005137003

Capital Structure and the Redeployability of Tangible Assets

Campello, Murillo; Giambona, Erasmo - Tinbergen Institute - 2011

We characterize the relation between corporate asset structure and capital structure by exploiting variation in the salability of tangible assets. Theory suggests that tangibility increases borrowing capacity because it allows creditors to more easily repossess a firm’’s assets. Tangible...

Persistent link: https://www.econbiz.de/10009209849

Instrumental Variables, Errors in Variables, and Simultaneous Equations Models: Applicability and Limitations of Direct Monte Carlo

Zellner, Arnold; Ando, Tomohiro; Basturk, Nalan; … - Tinbergen Institute - 2011

A Direct Monte Carlo (DMC) approach is introduced for posterior simulation in the Instrumental Variables (IV) model with one possibly endogenous regressor, multiple instruments and Gaussian errors under a flat prior. This DMC method can also be applied in an IV model (with one or multiple...

Persistent link: https://www.econbiz.de/10009322995

Education and Entrepreneurial Choice: An Instrumental Variables Analysis

Block, Joern H.; Hoogerheide, Lennart; Thurik, Roy - Tinbergen Institute - 2009

Education is argued to be an important driver of the decision to start a business. The measurement of its influence, however, is difficult since it is considered to be an endogenous variable. This study accounts for this endogeneity by using an instrumental variables approach

Persistent link: https://www.econbiz.de/10008513229

Possibly Ill-behaved Posteriors in Econometric Models

Hoogerheide, Lennart; Dijk, Herman K. van - Tinbergen Institute - 2008

Highly non-elliptical posterior distributions may occur in several econometric models, in particular, when the likelihood information is allowed to dominate and data information is weak. We explain the issue of highly non-elliptical posteriors in a model for the effect of education on income...

Persistent link: https://www.econbiz.de/10005504938

Are Education and Entrepreneurial Income Endogenous and do Family Background Variables make Sense as Instruments? A Bayesian Analysis

Block, Joern H.; Hoogerheide, Lennart; Thurik, Roy - Tinbergen Institute - 2010

Education is a well-known driver of (entrepreneurial) income. The measurement of its influence, however, suffers from endogeneity suspicion. For instance, ability and occupational choice are mentioned as driving both the level of (entrepreneurial) income and of education. Using instrumental...

Persistent link: https://www.econbiz.de/10008838535

Identifying the Weights in Exchange Market Pressure

Klaassen, Franc - Tinbergen Institute - 2011

Exchange market pressure (EMP) measures the pressure on a currency

Persistent link: https://www.econbiz.de/10008838565

Identifying the Weights in Exchange Market Pressure

Klaassen, Franc - Tinbergen Institute - 2011

Exchange market pressure (EMP) measures the pressure on a currency to depreciate. It adds to the actual depreciation a weighted combination of policy instruments used to ward off depreciation, such as interest rates and foreign exchange interventions, where the weights are their effectiveness....

Persistent link: https://www.econbiz.de/10008838620

Family Background Variables as Instruments for Education in Income Regressions: A Bayesian Analysis

Hoogerheide, Lennart; Block, Joern H.; Thurik, Roy - Tinbergen Institute - 2010

The validity of family background variables instrumenting education in income regressions has been much criticized. In this paper, we use data of the 2004 German Socio-Economic Panel and Bayesian analysis in order to analyze to what degree violations of the strong validity assumption affect the...

Persistent link: https://www.econbiz.de/10008484065