This paper examines the efficiency of electric power generation plants in the United States. A 1996 data set from the Utility Data Institute and county-level wage data from the Bureau of Labor statistics provide the information needed to construct measures of cost, output, and input prices for...

This paper investigates biases in the perceptions of probabilities using data from the 1989 and 1994 seasons at the Woodlands greyhound park in Kansas City, Kansas. Results reveal consistent evidence that the gambler's fallacy exists. The results also reveal that gamblers overestimate the...

This article proposes a dynamic labor market discrimination model based on Bayesian updating of beliefs by the employer. The employer forms initial beliefs of worker ability conditional on group and updates his beliefs each period based on observed output. Inaccurate initial priors lead to...

This paper examines how group-based assessments concerning employee ability impact employee compensation. The employer learns about worker ability through Bayesian updating, creating an additional channel for wage growth that is not available to those workers with only general labor market...

Macroeconomic performance in many developing countries is influenced by international credit conditions. This paper considers a developing economy that faces an upward-sloping supply function of debt. It analyzes how a particular foreign shock, a world interest shock, influences such key...

Empirical studies of parimutuel games establish several facts not previously explained by theory. For example, market odds fail to provide accurate predictions of outcomes and longshots earn lower expected values than other bets. This paper outlines a model of parimutuel games in which such...

This paper estimates earnings functions for two samples of U.K. and U.S. academic economists. Despite significant differences in compensation schemes, a comparably specified human capital earnings model does a good job explaining earnings variations for academic economists in both countries. Our...