While contract theory has reached a high degree of sophistication, econometric applications remain scarce. One often invoked reason is that adequate data is hard to find. We argue that insurance data fit the requirements of econometric testing especially well. Then we propose some insights on...

Consider an agent facing a risky distribution of losses who can change this distribution by exerting some effort. Should be exert more effort when he becomes more risk-averse? For instance, should we expect more risk-averse drivers to drive more cautiously? In this paper, we give sufficient...

The purpose of this paper is to study the causes of unemployment empirically, using individual data and an approach that refines on that of Meyer and Wise. Using the French 1997 Labor Survey data, we decompose non-employment of married women into three components: voluntary, classical (due to...

This paper presents a new simulated maximum-likelihood method that rests on estimating the likelihood nonparametrically on a simulated sample. We prove that this method, which can be used on very general models, is consistent and asymptotically efficient.