Identifying hedonic models

Economic models for hedonic markets characterize the pricing of bundles of attributes and the demand and supply of these attributes under different assumptions about market structure, preferences and technology. (See Jan Tinbergen, 1956, Sherwin Rosen, 1974 and Dennis Epple, 1987, for contributions to this literature). While the theory is well formulated, and delivers some elegant analytical results, the empirical content of the model is under debate. It is widely believed that hedonic models fit in a single market are fundamentally underidentified and that any empirical content obtained from them is a consequence of arbitrary functional form assumptions. The problem of identification in hedonic models is a prototype for the identification problem in a variety of economic models in which agents sort on unobservable (to the economist) characteristics: models of monopoly pricing (Michael Mussa and Sherwin Rosen, 1978; Robert Wilson, 1993) and models for taxes and labor supply (James Heckman, 1974). Sorting is an essential feature of econometric models of social interactions. (See William Brock and Steven Durlauf, 2001). In this paper we address the sorting problem in hedonic models. Nesheim (2001) extends this analysis to a model with peer effects. In this paper we note that commonly used linearization strategies made to simplify estimation and justify the application of instrumental variables methods, produce identification problems. The hedonic model is generically nonlinear. It is the linearization of a fundamentally nonlinear model that produces the form of the identification problem that dominates discussion in the applied literature. Linearity is an arbitrary and misleading functional form when applied to empirical hedonic models. Our research establishes that even though sorting equilibrium in a single market implies no exclusion restrictions, the hedonic model is generically nonparametrically identified. Instrumental variables and transformation model methods identify economically relevant parameters even 1 without exclusion restrictions. Multimarket data, widely viewed as the most powerful source of identification, achieves this result only under implausible assumptions about why hedonic functions vary across markets

Identification and estimation of hedonic models

This paper considers the identification and estimation of hedonic models. We establish that in an additive version of the hedonic model, technology and preferences are generically nonparametrically identified from data on demand and supply in a single hedonic market. The empirical literature that claims that hedonic models estimated on data from a single market are fundamentally underidentified is based on arbitrary linearizations that do not use all the information in the model. The exact economic model that justifies linear approximations is unappealing. Nonlinearities are generic features of equilibrium in hedonic models and a fundamental and economically motivated source of identification

Discontinuous symplectic capacities

We show that the spherical capacity is discontinuous on a smooth family of ellipsoidal shells. Moreover, we prove that the shell capacity is discontinuous on a family of open sets with smooth connected boundaries.Comment: We include generalizations to higher dimensions due to the unknown referee and Janko Latschev. We add examples of open sets with connected boundary on which the shell capacity is not continuous. 3rd and 4th version: minor changes, to appear in J. Fixed Point Theory App

Nonsmooth Analysis

This survey of nonsmooth analysis sets out to prove an inverse function theorem for set-valued maps. The inverse function theorem for the more usual smooth maps plays a very important role in the solution of many problems in pure and applied analysis, and we can expect such an adaptation of this theorem also to be of great value. For example, it can be used to solve convex minimization problems and to prove the Lipschitz behavior of its solutions when the natural parameters vary--a very important problem in marginal theory in economics

Leaf-wise intersections and Rabinowitz Floer homology

In this article we explain how critical points of a particular perturbation of the Rabinowitz action functional give rise to leaf-wise intersection points in hypersurfaces of restricted contact type. This is used to derive existence and multiplicity results for leaf-wise intersection points in hypersurfaces of restricted contact type in general exact symplectic manifolds. The notion of leaf-wise intersection points was introduced by Moser.Comment: 18 pages, 1 figure; v3: completely rewritten, improved result

Verifications of primal energy identities for variational problems with obstacles

We discuss error identities for two classes of free boundary problems generated by obstacles. The identities suggest true forms of the respective error measures which consist of two parts: standard energy norm and a certain nonlinear measure. The latter measure controls (in a weak sense) approximation of free boundaries. Numerical tests confirm sharpness of error identities and show that in different examples one or another part of the error measure may be dominant.Comment: 8 pages, 2 figures, conference paper: LSSC (Large-Scale scientific computing), Sozopol, Bulgaria, 2017. The final version will be published at Springe

New obstructions to symplectic embeddings

In this paper we establish new restrictions on symplectic embeddings of certain convex domains into symplectic vector spaces. These restrictions are stronger than those implied by the Ekeland-Hofer capacities. By refining an embedding technique due to Guth, we also show that they are sharp.Comment: 80 pages, 3 figures, v2: improved exposition and minor corrections, v3: Final version, expanded and improved exposition and minor corrections. The final publication is available at link.springer.co

Equilibrium states and their entropy densities in gauge-invariant C*-systems

A gauge-invariant C*-system is obtained as the fixed point subalgebra of the infinite tensor product of full matrix algebras under the tensor product unitary action of a compact group. In the paper, thermodynamics is studied on such systems and the chemical potential theory developed by Araki, Haag, Kastler and Takesaki is used. As a generalization of quantum spin system, the equivalence of the KMS condition, the Gibbs condition and the variational principle is shown for translation-invariant states. The entropy density of extremal equilibrium states is also investigated in relation to macroscopic uniformity.Comment: 20 pages, revised in March 200

On iterated translated points for contactomorphisms of R^{2n+1} and R^{2n} x S^1

A point q in a contact manifold is called a translated point for a contactomorphism \phi, with respect to some fixed contact form, if \phi (q) and q belong to the same Reeb orbit and the contact form is preserved at q. The problem of existence of translated points is related to the chord conjecture and to the problem of leafwise coisotropic intersections. In the case of a compactly supported contactomorphism of R^{2n+1} or R^{2n} x S^1 contact isotopic to the identity, existence of translated points follows immediately from Chekanov's theorem on critical points of quasi-functions and Bhupal's graph construction. In this article we prove that if \phi is positive then there are infinitely many non-trivial geometrically distinct iterated translated points, i.e. translated points of some iteration \phi^k. This result can be seen as a (partial) contact analogue of the result of Viterbo on existence of infinitely many iterated fixed points for compactly supported Hamiltonian symplectomorphisms of R^{2n}, and is obtained with generating functions techniques in the setting of arXiv:0901.3112.Comment: 10 pages, revised version. I removed the discussion on linear growth of iterated translated points, because it contained a mistake. To appear in the International Journal of Mathematic