Sugar growers have been capturing substantial rents from the U.S. sugar program. Despite well-documented huge welfare losses of this program, legislators have always voted against phasing it out. This paper uses Tobit analysis to explore the determinants of campaign contributions from the sugar...

The goal of this paper is to develop predictions regarding market consequences of peer effects in higher education and to offer empirical evidence about the extent to which those predictions are borne out in the data. We develop a model in which colleges seek to maximize the quality of the...

This paper develops optimal tests for model selection between two nested models in the presence of underlying parameter instability. These are joint tests for both parameter instability and a null hypothesis on (a subset of) the parameters. They modify the existing tests for parameter...

We ask whether foreign equity ownership affects the stability of information signals that are absorbed into prices in an emerging economy. We address both the effect of ownership restrictions exogenously imposed on stock ownership and the impact of introducing or widening foreign ownership...

Personal privacy is studied in the context of a competitive product (or labor) market. In the first stage of the game, firms that sell homogeneous goods or services (e.g., insurance, credit, or rental housing) post prices they promise to charge approved applicants. In the second stage, each...

This paper examines the major interest groups in the debate over allowing the wholesale re-importation of prescription drugs through the Pharmaceutical Market Access Act. By making use of the logit model, we see the effects that each of these groups has had on the voting behavior of the 108 th...

We propose a sequential test for predictive ability. The test is designed for recursive regressions in which the researcher is interested in recursively assessing whether some economic variables have predictive or explanatory content for another variable. It is common in the forecasting...

The paper uses and extends the Efficient Method of Moments (EMM) technique to estimate and test continuous time diffusion models for stock returns and interest rates. The EMM technique, developed in previous papers by Gallatn and Tauchen along with various collaborators, is a simulation-based...

This paper examines determinants of being disabled in Russia, along with the probability of moving from one disability status to another, using data from 1994 through 2002 from the Russian Longitudinal Monitoring Survey. Disability risk rises with age, declines with income and self-reported good...

This paper considers the dynamic producer and consumer benefits from improving habitat that supports a commercial fishery under two different fishery management institutions. By coupling state equations that represent the effects of estuarine eutrophication on fish populations with a...