This article examines the impact of the boundary specification problem upon the estimation of spatial autoregressive models within an instrumental variable (IV) framework. We show the usual IV estimator remains consistent and asymptotically normal, but incurs an asymptotic bias of order...

I develop a model where workers decide how hard to look for a job via formal and informal search channels. The intensity of formal search determines an individual’s arrival rate of offers. The strength of investment in informal search translates into a job contact network in which job offers...

For the class of shortest path games, we propose a family of new cost sharing rules satisfying core selection. These rules allocate shares according to some lexicographic preference relation. A computational procedure is provided. Our results relate to those of Tijs et al. (2011).

We study the provision of a public good in a social network where links are directed, i.e., the information flows one way. Our results relate, through stochastic dominance, the equilibrium outcome of such a process with the out-degree distribution of the network.

This paper examines the small-sample performance of spatial HAC (SHAC) estimators of the standard errors on parameters. We find that, in small to moderately-sized datasets, the use of HAC estimators may be recommended only with a relatively large degree of cross-sectional interdependence.

There is a long and detailed history of attempts to understand what causes crime. One of the most prominent strands of this literature has sought to better understand the relationship between economic conditions and crime. An economic argument is that in an attempt to maintain consumption in the...

We apply Leeson and Dean’s (2009) method for studying democratic dominoes to capitalist spillovers to compare the rates at which capitalism and democracy spread between countries. We find that capitalism and democracy spread at approximately the same modest rate.

This paper considers a factor-augmented regression model in the presence of structural change. We propose a two-step procedure to estimate the coefficients of explanatory variables. We show that when the number of units (N) and the number of periods (T) are large and comparable, the proposed...

We estimate the long rate and its volatility within the Svensson framework. The procedure that best extrapolates the longest observable rate and its volatility is a 2-dimensional grid search conditioned on the ridge regression suggested by Annaert et al. (2013).

We propose to apply the group fused Lasso to estimate time series models with endogenous regressors and an unknown number of breaks. It can correctly determine the number of breaks and estimate the break dates asymptotically. Simulations and applications are given.