14,470 research outputs found
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Robust misspecification tests for the Heckman’s two-step estimator
We construct and evaluate LM and Neyman’s C(α) tests based on bivariate Edgeworth expansions for the consistency of the Heckman’s two-step estimator in selection models, that is, for the marginal normality and linearity of the conditional expectation of the error terms. The proposed tests are robust to local misspecification in nuisance distributional parameters. Monte Carlo results show that instead of testing bivariate normality, testing marginal normality and linearity of the conditional expectations separately have a better size performance. Moreover, the robust variants of the tests have better size and similar power to non-robust tests, which determines that these tests can be successfully applied to detect specific departures from the null model of bivariate normality. We apply the tests procedures to women’s labor supply data
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Nonparametric estimation of ATE and QTE: an application of Fractile Graphical Analysis
Nonparametric estimators for average and quantile treatment effects are constructed using Fractile Graphical Analysis, under the identifying assumption that selection to treatment is based on observable characteristics. The proposed method has two-steps: first, the propensity score is estimated, and second, a blocking estimation procedure using this estimate is used to compute treatment effects. In both cases, the estimators are proved to be consistent. Monte Carlo results show a better performance than other procedures based on the propensity score. Finally, these estimators are applied to a job training dataset
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Informal Jobs and Trade Liberalisation in Argentina
Rapid trade liberalisation can exert profound effects on labour markets. Domestic firms, to sustain competitiveness for survival, could react through cutting labour benefits to achieve cost reductions. Alternatively, trade liberalisation may alter the industry composition of firms changing the aggregate formality rates. This paper studies the relationship between trade liberalisation and informality in Argentina. Using manufacturing industry-level data for 1992-2003, the results confirm the hypothesis that trade increases informality in industries that experience sudden foreign competition. This explains about a third of the increase in informality. Sectors with higher investment ratios are able to neutralize and reverse this effect
Instrumental variables quantile regression for panel data with measurement errors
This paper develops an instrumental variables estimator for quantile regression in panel data with fixed effects. Asymptotic properties of the instrumental variables estimator are studied for large N and T when Na/T ! 0, for some a > 0. Wald and Kolmogorov-Smirnov type tests for general linear restrictions are developed. The estimator is applied to the problem of measurement errors in variables, which induces endogeneity and as a result bias in the model. We derive an approximation to the bias in the quantile regression fixed effects estimator in the presence of measurement error and show its connection to similar effects in standard least squares models. Monte Carlo simulations are conducted to evaluate the finite sample properties of the estimator in terms of bias and root mean squared error. Finally, the methods are applied to a model of firm investment. The results show interesting heterogeneity in the Tobin’s q and cash flow sensitivities of investment. In both cases, the sensitivities are monotonically increasing along the quantiles
Argentina's default and the lack of dire consequences
We analyze the 2001 Argentine default on its foreign debt and its consequences in terms of the existing literature on sovereign debt default. It is our purpose to evaluate this experience and to see to what extent the Argentine case requires a re-thinking on the nature and consequences of defaults. We show that the Argentine case contradicts many of their standard predictions, in particular its posterior lack of access to international credit, restriction to international trade and negative economic growth. Moreover, it corroborates the historical fact that many defaulters “get away with it.
Transversal interface dynamics of a front connecting a stripe pattern to a uniform state
Interfaces in two-dimensional systems exhibit unexpected complex dynamical
behaviors, the dynamics of a border connecting a stripe pattern and a uniform
state is studied. Numerical simulations of a prototype isotropic model, the
subcritical Swift-Hohenberg equation, show that this interface has transversal
spatial periodic structures, zigzag dynamics and complex coarsening process.
Close to a spatial bifurcation, an amended amplitude equation and a
one-dimensional interface model allow us to characterize the dynamics exhibited
by this interface.Comment: 4 pages. To be published in Europhysics Letter
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Earnings and Social Background: An evaluation of caste/ethnic wage differentials in the Nepalese labor market
This paper examines the sources of wage differentials among caste/ethnic groups, employing national survey data from Nepal. Our study shows that, in countries such as Nepal which have imperfect labour markets, the conventional Oaxaca decomposition methodology fails to estimate precisely the source of wage differential. Using an extended model, occupational choice, firm size distribution and the interaction between these two are employed along with the conventionally used measures of human capital endowments of different groups, to estimate these effects. Our results indicate that the lack of access to better paying occupations and larger firms, rather than differences in human capital, are the main factors underlying the caste/ethnic wage differentia in Nepal. Furthermore, empirical evidence is not found in favour of government policy of "affirmative action" to contribute yet in narrowing down the caste/ethnic wage differential in the labour market
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