This paper addresses the question of whether the effect of parental drinking on children’s later consumption of alcohol – which is frequently found to be of positive sign – exhibits a certain pattern of heterogeneity. In particular, if this eff ect is more prominent in the upper tail than...

The classical Heckman (1976, 1979) selection correction estimator (heckit) is misspecified and inconsistent if an interaction of the outcome variable and an explanatory variable matters for selection. To address this specification problem, a full information maximum likelihood estimator and a...

Recent health policy reforms try to increase consumer choice. We use a laboratory experiment to analyze consumers’ tastes in typical contract attributes of health insurances and to investigate their relationship with individual risk preferences. First, subjects make consecutive insurance...

In an experimental setting impulse-response behaviour in intuitive inflation forecasting is analysed. Participants were asked to forecast future values of inflation for a fictitious economy after receiving charts and lists of past values of inflation and output gap. Thirty periods were...

We propose a new explanation for differences and changes in labor supply by gender and marital status, and in particular for the increase in married women’s labor supply over time.We argue that this increase as well as the relative constancy of other groups’ hours are optimal reactions to...

Empirical evidence from the psychology literature suggests that reactions towards health shocks depend strongly on the personality trait of locus of control, which is usually unobservable to the analyst. In this paper, the role of this discrete heterogeneity in shaping the effects of health...