This paper provides a new estimation and solution method for a generalized class of sorting hedonic models based on discrete approximations of the distribution of housing quality. Our approach incorporates heterogeneity in preferences and treats quality as latent. Additionally, a housing market...

To detect the presence of predatory pricing, antitrust authorities routinely ask whether a firm sacrifices current profit in exchange for the expectation of higher future profit following the exit of its rival. Because predatory pricing is an inherently dynamic phenomenon, we show in this paper...

A central challenge in estimating models with heterogeneous housing is separating quality from price. We provide a new method for estimating hedonic functions for rental rates and housing values treating housing quality as unobserved by the econo- metrician. Our method also deals with the...

This paper studies markets for heterogeneous goods using mechanism-design theory. For each combination of desirable properties, we derive an assignment process with these properties in the form of a corresponding direct-revelation game, or we show that it does not exist. Each participant's...

We study a stochastic overlapping generations model with production and three- period-lived agents. Agents trade bonds and risky capital. Unlike the two-period model, we show that a stationary equilibrium in which prices and allocations depend solely on the aggregate capital stock and the...

Abstract: While many parts of the developing world have experienced “green revolutions”, agricultural productivity growth in sub-Saharan Africa has stagnated for decades. In this paper, I argue that production uncertainty is a major factor inhibiting agricultural investment in the region,...

We extend the Laplace estimators approach proposed by Chernozhukov and Hong (2003) by incorporating information in the space of overidentifying re- strictions (OR) in GMM, information previously ignored during parameter es- timation in Bayesian methods. Parameters and test statistics are...