A new test for financial market contagion based on increases in extremal dependence (co-kurtosis and co-volatility) is developed to identify the propagation mechanism of shocks across international financial markets. This new approach is applied to test for contagion in equity markets and...

We estimate a structural dynamic programming model of schooling decisions with unobserved heterogeneity in school ability and market ability on a sample taken from the National Longitudinal Survey of Youth (NLSY). Both the instantaneous utility of attending school and the wage regression...

We estimate a dynamic programming model of schooling decisions in which the degree of risk aversion can be inferred from schooling decisions. In our model, individuals are heterogeneous with respect to school and market abilities but homogeneous with respect to the degree of risk aversion. We...