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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

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

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

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

d'Uva, Teresa Bago; Lindeboom, Maarten; O'Donnell, Owen; … - Tinbergen Institute - 2010

Reliance on self-rated health to proxy medical need can bias estimation of education-related inequity in health care … utilisation. We correct this bias both by instrumenting self-rated health with objective health indicators and by purging self …-rated health of reporting heterogeneity identified from health vignettes. Using data on elderly Europeans, we find that …

Persistent link: https://www.econbiz.de/10008752535

A Theory of Socioeconomic Disparities in Health over the Life Cycle

Galama, Titus J.; Kippersluis, Hans van - Tinbergen Institute - 2010

Understanding of the substantial disparity in health between low and high socioeconomic status (SES) groups is hampered … disparities in health by SES. In our model, lifestyle factors, working conditions, retirement, living conditions and curative care … are mechanisms through which SES, health and mortality are related. Our model predicts a widening and possibly a …

Persistent link: https://www.econbiz.de/10008484063