Abstract Suppose that the econometrician is interested in comparing two misspecified moment restriction models, where the comparison is performed in terms of some chosen measure of fit. This paper is concerned with describing an optimal test of the Vuong (1989) and Rivers and Vuong (2002) type...

We study the optimal auction problem with participation costs in the symmetric independent private values setting, where bidders know their valuations when they make independent participation decisions. After characterizing the optimal auction in terms of participation cutoffs, we provide an...

I study a multi-player mechanism design problem where the players are able to collude. I characterize the extent that the principal can link the compensation level of one of these players to the production performance of the other. I use this characterization result to identify the optimal...

The paper explains new methodology that was used in the 2005 International Comparison Program (ICP) that compared the relative price levels and GDP levels across 146 countries. In this round of the ICP, the world was divided into 6 regions: OECD, CIS, Africa, South America, Asia Pacific and West...

This paper shows that (firm-level) competition has a positive impact on (individual-level) trust. Using US states’ banking de-regulation from the mid 1970s, we first show that an increase in competition had a causal impact on trust, measured in the General Social Survey (GSS). We develop...

We use a large, rich Canadian micro-level dataset to examine the channels through which family socio-economic status and unobservable characteristics affect children's decisions to drop out of high school. First, we document the strength of observable socio-economic factors: our data suggest...

This paper reviews the recent research on the determinants of the educational attainment among the children of immigrants (the 2nd generation) in Canada and the United States. The focus is on the gap in educational attainment between the 2nd and 3rd-and-higher generations (the children of...

We examine the evolution of the returns to human capital in Canada over the period 1980-2005. Our main finding is that returns to education increased substantially for Canadian men, contrary to conclusions reached previously. Most of this rise took place in the early 1980s and since 1995....

Studies based on instrumental variable techniques suggest that the value of a high school education is large for potential dropouts, yet we know much less about the size of the benefiÂ…t for students who will go on to post-secondary education. To help Â…fill this gap, I measure the...

This paper studies the role played by linguistic enclaves on the economic integration of immigrants to Canada. Linguistic enclaves are defined as groups of people who are similar with respect to languages used on their jobs. A five category classification of major types of linguistic enclaves is...