Economics
A triangular structural panel data model with additive separable individual-specific effects is used to model the causal effect of a covariate on an outcome variable when there are unobservable confounders with some of them time-invariant.…
Estimation and counterfactual experiments in dynamic discrete choice models with large state spaces pose computational difficulties. This paper proposes a model-adaptive approach, based on the conjugate gradient (CG) method, to solve the…
This paper studies the properties of linear regression on centrality measures when network data is sparse and observed with error. We make three contributions in this setting. First, we show that OLS estimators can become inconsistent under…
We study dynamic mechanism design in a pure-exchange economy with privately observed idiosyncratic income. In the standard infinitely lived hidden-income benchmark of Green (1987) and Thomas-Worrall (1990), constrained-efficient allocations…
This paper points out that rational inattention is a nested regularized optimal transport problem. We use entropic optimal transport to establish the main results in Matejka and McKay (2015) and Caplin, Dean, and Leahy (2019) and extend…
This paper examines bilateral claims problems with lower and upper exclusion thresholds that determine whether an individual is excluded from initial gains or losses. We introduce the exclusion dilation operator, a method that transforms…
This paper introduces a new factor contributing to the decline in marriage and fertility: the growth of leisure technology. Over recent decades, high-income countries have experienced two notable shifts in household and family dynamics.…
We study a spatiotemporal service matching problem in which demand, heterogeneous in location and time sensitivity/preference, is to be assigned to service stations. The planner seeks to maximize social welfare, defined as total service…
Childhood socioeconomic disadvantage is a well established determinant of health in later life. Less is known about how early-life deprivation unfolds when individuals experience major institutional transformation and migration in…
Non-survey methods have been developed and applied for estimating regional input-output tables. However, there is an ongoing debate about the assumptions necessary for these methods and their accuracy. To address these issues, this study…
The long-term relationship between radiative forcing and surface temperature is imperative for predicting the impacts of climate change. This study employs multicointegration to characterize this relationship and uses Transformed and…
The war of attrition with two-sided asymmetric information is a foundational model in political economy, yet it generically admits a continuum of perfect Bayesian equilibria. This paper characterizes the sources of equilibrium multiplicity.…
Instrumental variable (IV) methods rely critically on the exclusion restriction, which is untestable in exactly-identified models under standard assumptions. We propose a framework combining IV analysis with the LiNGAM method to test this…
Despite the scale of capital being deployed toward AI initiatives, no empirical framework currently exists for benchmarking where a firm stands relative to competitors in AI readiness and deployment, or for translating that position into…
This paper develops a simple model of the world supply chain to estimate the effects of sanctions that restrict the flow of inputs from one country to another. Such restrictions operate through changes in the weights of the global…
We propose a model of whataboutism -- a rhetorical strategy that deflects criticism by citing similar misconduct that goes uncriticized on the critic's side -- and study its implications for social norms governing offensive speech. In an…
This paper examines how loss aversion affects wages offered by employers and accepted by job seekers. I introduce a behavioral search model with monopsonistic firms making wage offers to job seekers who experience steeper disutility from…
We develop a deep learning algorithm for constructing globally accurate approximations to functional rational expectations equilibria of dynamic stochastic economies in the sequence space. We use deep neural networks to parameterize key…
We introduce Delphos, a deep reinforcement learning framework for assisting the discrete choice model specification process. Delphos aims to support the modeller by providing automated, data-driven suggestions for utility specifications,…
How labor markets adjust immediately after minimum wage hikes remains an open, policy-relevant question. This paper studies short-run minimum-wage effects in Japan's spot labor market using Timee data and a wage-bin…