Economics

We study the application of the grouped fixed effects approach to binary choice models for panel data in presence of severe complete separation. Through data loss, complete separation may lead to biased estimates of Average Partial Effects…

Predictive algorithms inform consequential decisions in settings with selective labels: outcomes are observed only for units selected by past decision makers. This creates an identification problem under unobserved confounding -- when…

There is no known explicit global closed form solution for the standard income fluctuation problem with a borrowing constraint and where wealth accumulates with a constant interest rate $r$. Using a continuous time formulation, I derive an…

We analyze multivariate ordered discrete response models with a lattice structure, modeling decision makers who narrowly bracket choices across multiple dimensions. These models map latent continuous processes into discrete responses using…

We study how job search behavior evolves over the unemployment spell and the extent to which job seekers experience duration dependence in callbacks. Leveraging data on 2.4 million monthly activity reports containing detailed information on…

We propose a new estimation methodology to address the presence of covariate measurement error by exploiting the availability of spatial data. The approach uses neighboring observations as repeated measurements, after suitably controlling…

This study analyzes the gender gap in desired wages using large administrative data of public job referrals, which allows us to look at the desired salaries of individuals from a wider wage distribution. We conduct a decomposition analysis…

We consider fair and consistent extensions of the Shapley value for games with externalities. Based on the restriction identified by Casajus et al. (2024, Games Econ. Behavior 147, 88-146), we define balanced contributions, Sobolev's…

We develop a hybrid approach to estimate spatial coordination mechanisms in structural dynamic discrete choice models by combining nested fixed-point (NFXP) dynamic programming with method of simulated moments (MSM), achieving computational…

This paper examines a novel proxy for political polarization, initially proposed by Caliskan et al., which estimates intergroup distances using computer vision. Analyzing 1,400+ YouTube videos with advanced object detection, their study…

We study factor models that combine latent factors with firm characteristics and propose a new framework for modeling, estimating, and inferring pricing errors. Following Zhang (2024), our approach decomposes mispricing into two distinct…

Using Croatian data and the IMF's Natural Disaster Debt Dynamic Tool, this paper assesses how public debt adjusts to extreme events in a small open economy. We compare debt paths under baseline and stress scenarios, the latter simulating a…

Blockchains face inherent limitations when communicating outside their own ecosystem, largely due to the Byzantine Fault Tolerant (BFT) 3f+1 security model. Trusted Execution Environments (TEEs) are a promising mitigation because they allow…

Using real-world food price and greenhouse gas (GHG) emissions data for locally available food items in 171 countries, we measure how healthy diets could be obtained with the lowest possible emissions, compared to costs and emissions of the…

The preparedness and readiness of Europe is currently being challenged not only by Russia, but since recently also by its long-standing allies. In response to the evolving external security environment, the EU's White Paper on European…

Workers without formal credentials experience substantially lower employment rates than their credentialed counterparts, but the extent to which information frictions contribute to these disparities remains unclear. We conducted a…

What happens if selective colleges change their admission policies? We study this question by analyzing the world's first implementation of nationally centralized meritocratic admissions in the early twentieth century. We find a persistent…

We develop a class of multivariate ordered discrete response models featuring general rectangular structures, which allow for functionally interdependent thresholds across dimensions, extending beyond traditional (lattice) models that…

The paper redefines econometric identification under formal privacy constraints, particularly differential privacy (DP). Traditionally, econometrics focuses on point or partial identification, aiming to recover parameters precisely or…

We explore an application of all-pay auctions to model trade wars and territorial annexation. Specifically, in the model we consider the expected resource, production, and aggressive (military/tariff) power are public information, but…