Optimal regulation of a polluting natural monopolist must correct for both external damages and market power to achieve a social optimum. Existing non-Bayesian regulatory methods require knowledge of the demand function, while Bayesian schemes require knowledge of the underlying cost...

This study's estimates of the reduction in accidents from a ban on cell phone use while driving are both lower and less certain than previous studies indicate.

Broadband is becoming increasingly important to national economies and the personal lives of users. However, broadband availability and adoption are not diffusing in rural and urban areas at the same rates. This article updates the rural broadband digital divide, with special attention paid to...

This letter evaluates the performance of auxiliary regression-based specification tests for parametric duration models estimated with censored data. The test using asymptotic critical values has poor size. Bootstrapping corrects the size problem but results in a biased power curve.

In this paper I investigate response bias in survey data on annual driving mileage and evaluate the performance of a proposed remedy, Orbit. Individuals systematically exaggerate their deviation from the sample average, and using the self-reported data leads to misleading estimates of the income...

This paper endogenizes the interplay between innovation by a regulated firm and regulatory delay. When product innovation costs fall over time, an extra day of regulatory delay increases time to introduction by more than a day. In the signaling model, the firm therefore times its innovation to...

Queuing theory may be useful for analyzing economic phenomena involving count and duration data. We develop maximum likelihood estimators for the time-varying parameters of a simple queuing system based on two kinds of data: complete interarrival and service times (IST), and number of units in...

This paper inquires into the response of industry dynamics to increases in costs. We show that increases in marginal and fixed costs may have interesting, non-obvious effects on entry and exit. Before costs change, the model exhibits behavior that matches many industries such as manufacturing...