Recent research underscores the sensitivity of conclusions drawn from the application of econometric methods devised for quantitative outcome variables to data featuring ordinal outcomes. The issue is particularly acute in the analysis of happiness data, for which no natural cardinal scale...

In the paper, we make an attempt to estimate the size of informal economy on the base of micro-data. Two main approaches are described and compared. They are implemented on the base of an RLMS sample for 2012. The first method, called single equation approach, is based on the specific category...

Full paper available at "https://ssrn.com/abstract=3141041" https://ssrn.com/abstract=3141041We first present simulations investigating some properties of the Inverse Product Differentiation Logit (IPDL) model. Next, we provide a range of general methods for building Generalized Logit (GL)...

I develop the flexible inverse logit (FIL) model, which is a structural inverse demand model which is able to describe the behavior of heterogeneous, utility-maximizing consumers choosing from a choice set of (possibly many) products that are differentiated in a way that is both observed and...

While the elasticity of housing supply has served as a popular instrument for inferring the causal effect of housing price growth on economic outcomes, concerns about the exclusion restriction have emerged. We introduce a methodology for creating instruments using the pre-existing supply of...

We conduct a narrow replication of Browning and Collado (Journal of Applied Econometrics 2007; 22(3): 625-640). They estimate a linear panel AR(1) version of an Engel curve for six consumption composites using iterated GMM. We find that the coefficient estimates and standard errors differ from the...

The Spanish Christmas Lottery is one of the most common lottery games played in Spain. This paper analyses how local windfall gains from the Christmas Lottery can affect household consumption behavior. We find that there is a significant increase in goods consumption in the winning Regions. More...

Although there is ample research on what affects tax morale, empirical evidence that tax morale affects tax evasion is scarce. The reason for this scarcity, is the difficulty to connect a measure of tax morale to a reliable proxy of tax evasion. The primary contribution, is that I identify an...

Using the earnings from the first prize of the Spanish Christmas Lottery (one of the most popular lottery games in Spain), we study how local windfall gains from the Christmas Lottery can affect household consumption behavior. After estimating the direct impact of the lottery winnings on...

Many empirical studies require estimating how consumers substitute across differentiated products. Examples can be found in a wide range of fields of economics, including environmental economics, health care economics, industrial organization, and international trade. In this paper, I propose a...