This paper extends Horowitz's smoothed maximum score estimator to discrete-time duration models. The estimator's consistency and asymptotic distribution are derived. Monte Carlo simulations using various data generating processes with varying error distributions and shapes of the hazard rate are...

Grandfathering of emission permits creates a rent to incumbent firms since a valuable asset is freely distributed to them. In this paper, we examine the strategic behaviour of polluters that anticipate a change in environmental regulation from a standard-setting to tradable emission permits with...