The paper explores weak monotonicity and convexity assumptions in a model for the decision to smoke with endogenous schooling. Theories of productive and allocative efficiency as well as the influence of time preferences are accounted for in order to derive testable constraints that bound the...

This paper proposes a test for missing at random (MAR). The MAR assumption is shown to be testable given instrumental variables which are independent of response given potential outcomes. A nonparametric testing procedure based on integrated squared distance is proposed. The statistic\'s...

Widowhood and retirement are likely to change the economic environment of elderly households. While retirement primarily changes income and expenditure patterns, widowhood fundamentally changes the structure of the household. Beside high non-monetary cost of losing the partner, resources are no...

How does class size in compulsory school affect peoples’ long run education and earnings? We use maximum class size rules and Norwegian administrative registries allowing us to observe outcomes up to age 48. We do not find any indication of beneficial effects of class size reduction in...

This paper addresses how to enhance the role of data in structural model design by utilizing structural breaks and superfluous information as auxiliary tools of exact identification. To illustrate the procedure and to study the simultaneous interplay between financial variables and the real side...

We find empirical evidence of a financial accelerator using a data based procedure of Structural Model Design. Credit to firms, asset prices and aggregate economic activity interact over the business cycle in our empirical model of a dynamic economy. Furthermore, the interdependence between...

This study focuses on the role of heterogeneity in network peer effects by accounting for network-specific factors and different driving mechanisms of peer behavior. We propose a novel Multivariate Instrumental Variable (MVIV) estimator which is consistent for a large number of networks keeping...

As mixture regression models increasingly receive attention from both theory and practice, the question of selecting the correct number of segments gains urgency. A misspecification can lead to an under- or oversegmentation, thus resulting in flawed management decisions on customer targeting or...

Intergenerational persistence estimates are susceptible to several well-documented biases arising from income measurement, and it has become standard practice to construct income measures to mitigate these. However, remaining bias can lead to a spurious grandparent coefficient estimate in...

This paper provides a method to construct simultaneous confidence bands for quantile and quantile effect functions for possibly discrete or mixed discrete-continuous random variables. The construction is generic and does not depend on the nature of the underlying problem. It works in conjunction...