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This paper investigates and extends the computationally attractive nonparametric random coefficients estimator of Fox, Kim, Ryan, and Bajari (2011). We show that their estimator is a special case of the nonnegative LASSO, explaining its sparse nature observed in many applications. Recognizing...
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elasticity without the use of consumption or asset data. We find this elasticity on average to be negative, but small. The degree …
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