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Standard methods for estimating production functions in the Olley and Pakes (1996) tradition require assumptions on input choices. We introduce a new method that exploits (increasingly available) data on a firm's expectations of its future…

Econometrics · Economics 2024-07-12 Agnes Norris Keiller , Aureo de Paula , John Van Reenen

The spatial heterogeneity of cities -- the uneven distribution of population and activities -- is fundamental to urban dynamics and related to critical issues such as infrastructure overload, housing affordability, and social inequality.…

Physics and Society · Physics 2025-11-14 Hao Huang , Yuming Lin , Jiazhen Liu

Tests for structural breaks in time series should ideally be sensitive to breaks in the parameter of interest, while being robust to nuisance changes. Statistical analysis thus needs to allow for some form of nonstationarity under the null…

Methodology · Statistics 2022-12-02 Fabian Mies

Both buyers and sellers face uncertainty in real estate transactions in about when to time a transaction and at what cost. Both buyers and sellers make decisions without knowing the present and future state of the large and dynamic real…

Applications · Statistics 2022-01-12 Yuanyuan Zha , Susan T. Parker , James J. Foster , Vadim Sokolov

The complex relationship between climate shocks, migration, and adaptation hampers a rigorous understanding of the heterogeneous mobility outcomes of farm households exposed to climate risk. To unpack this heterogeneity, the analysis…

General Economics · Economics 2024-03-15 Marco Letta , Pierluigi Montalbano , Adriana Paolantonio

We represent the functioning of the housing market and study the relation between income segregation, income inequality and house prices by introducing a spatial Agent-Based Model (ABM). Differently from traditional models in urban…

Economics · Quantitative Finance 2018-10-23 Marco Pangallo , Jean Pierre Nadal , Annick Vignes

We pose the estimation and predictability of stock market performance. Three cases are taken: US, Japan, Germany, the monthly index of the value of realized investment in stocks, prices plus the value of dividend payments (OECD data). Once…

General Economics · Economics 2023-05-11 Ignacio Escanuela Romana , Clara Escanuela Nieves

Entropy production (EP) is a central measure in nonequilibrium thermodynamics, as it can quantify the irreversibility of a process as well as its energy dissipation in special cases. Using the time-reversal asymmetry in a system's path…

Statistical Mechanics · Physics 2022-04-26 Dong-Kyum Kim , Sangyun Lee , Hawoong Jeong

In empirical studies, the data usually don't include all the variables of interest in an economic model. This paper shows the identification of unobserved variables in observations at the population level. When the observables are distinct…

Econometrics · Economics 2022-12-07 Yingyao Hu

An extension of the Hawkes model where the productivity is variable is considered. In particular, the case is considered where each point may have its own productivity and a simple analytic formula is derived for the maximum likelihood…

Applications · Statistics 2020-03-20 Frederic Paik Schoenberg

When an unbiased estimator of the likelihood is used within a Metropolis--Hastings chain, it is necessary to trade off the number of Monte Carlo samples used to construct this estimator against the asymptotic variances of averages computed…

Methodology · Statistics 2014-09-16 Arnaud Doucet , Michael Pitt , George Deligiannidis , Robert Kohn

Triangular systems with nonadditively separable unobserved heterogeneity provide a theoretically appealing framework for the modelling of complex structural relationships. However, they are not commonly used in practice due to the need for…

Econometrics · Economics 2019-10-08 Victor Chernozhukov , Iván Fernández-Val , Whitney Newey , Sami Stouli , Francis Vella

Mixture models provide a flexible representation of heterogeneity in a finite number of latent classes. From the Bayesian point of view, Markov Chain Monte Carlo methods provide a way to draw inferences from these models. In particular,…

Methodology · Statistics 2020-05-06 Carolina Valani Cavalcante , Kelly Cristina Mota Gonçalves

This paper describes how a time-varying Markov model was used to forecast housing development at a master-planned community during a transition from high to low growth. Our approach draws on detailed historical data to model the dynamics of…

Econometrics · Economics 2024-08-30 Christopher K. Allsup , Irene S. Gabashvili

When opinion spread is studied, peer pressure is often modeled by interactions of more than two individuals (higher-order interactions). In our work, we introduce a two-layer random hypergraph model, in which hyperedges represent households…

Social and Information Networks · Computer Science 2025-12-30 Ágnes Backhausz , Villő Csiszár , Balázs Csegő Kolok , Damján Tárkányi , András Zempléni

This paper explores the nonparametric estimation of the volatility component in a heteroscedastic scalar-on-function regression model, where the underlying discrete-time process is ergodic and subject to a missing-at-random mechanism. We…

Methodology · Statistics 2024-12-17 Abdelbasset Djeniah , Mohamed Chaouch , Amina Angelika Bouchentouf

Unobserved heterogeneous treatment effects have been emphasized in the recent policy evaluation literature (see e.g., Heckman and Vytlacil, 2005). This paper proposes a nonparametric test for unobserved heterogeneous treatment effects in a…

Econometrics · Economics 2021-08-17 Yu-Chin Hsu , Ta-Cheng Huang , Haiqing Xu

Dynamic heterogeneity has often been modeled by assuming that a single-particle observable, fluctuating at a molecular scale, is influenced by its coupling to environmental variables fluctuating on a second, perhaps slower, time scale.…

Condensed Matter · Physics 2009-11-07 Gregor Diezemann , Gerald Hinze , Hans Sillescu

Pseudo-marginal Markov chain Monte Carlo methods for sampling from intractable distributions have gained recent interest and have been theoretically studied in considerable depth. Their main appeal is that they are exact, in the sense that…

Computation · Statistics 2015-03-25 Felipe J. Medina-Aguayo , Anthony Lee , Gareth O. Roberts

Estimation and counterfactual analysis in dynamic structural models rely on assumptions about the dynamic process of latent variables, which may be misspecified. We propose a framework to quantify the sensitivity of scalar parameters of…

Econometrics · Economics 2025-11-17 Ertian Chen