We extend the KVB approach of Kiefer, Vogelsang, and Bunzel (2000, Econometrica) and Kiefer and Vogelsang (2002b, Econometric Theory) to construct a class of robust tests for over-identifying restrictions in the context of GMM. The proposed test does not require consistent estimation of the...

We study the pricing problem of a durable-goods monopolist. With network effects, consumption externalities among heterogeneous groups of consumers generate a discontinuous demand function. Consequently, the lessor has to offer a low price in order to reach the mass market, whereas the seller...

This paper investigates the dynamics of property prices and their interaction with output growth in a general equilibrium model. Closed form solutions and testable hypotheses are derived from a mildly restricted version of the model. The testable hypotheses are broadly supported empirically. In...

Evans and Jovanovic (1989) find that wealth is an important determinant of business startups due to liquidity constraints. However, Cressy (2000) argues that if risk aversion is a negative function of wealth, Evans and Jovanovic's empirical results could be spurious and the positive effect of...

The “decoupled” liability system awards the plaintiff an amount that differs from what the defendant pays. The previous approach to the optimal decoupling design is based on the assumption of complete information, which results in an optimal liability for the defendant “as much as he can...

In this paper we propose a new class of tests for the martingale difference hypothesis based on the moment conditions derived by Bierens (1982). In contrast with the existing consistent tests, the proposed test has a standard limiting distribution and is easy to implement. Comparing with the...

In the last few years, the three major cities in Taiwan have been experimenting with two different demand-side management approaches to reduce the waste generated by households and to promote the recycling of recyclables. Thus, there are three different kinds of approaches of waste management...

The purpose of this paper is to test whether there is an intergenerational transmission of gender preferences in educational resource allocation among children. The unique data set of Taiwan’s Panel Study of Family Dynamics project provides us a rich 3-generation education information and...

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This paper uses an otherwise standard, competitive growth model without externality and distortions to establish multiple balanced growth paths. Our model is based on the standard one-sector, endogenous growth model of Romer (1986), with a twist that households’ preference depends partly upon...