The paper evaluates the usefulness of a nonparametric approach to Bayesian inference by presenting two applications. The approach is due to Ferguson (1973, 1974) and Rubin (1981). Our first application considers an educational choice problem. We focus on obtaining a predictive distribution for...

In this paper we propose a new estimator for a model with one endogenous regressor and many instrumental variables. Our motivation comes from the recent literature on the poor properties of standard instrumental variables estimators when the instrumental variables are weakly correlated with the...

Consider an individual trying to forecast his future earnings, in order to guide savings and other decisions. We envision an individual seeking advice from a financial planner. The individual provides data on his earnings history and on various personal characteristics such as age and education....