Inter-temporal Price Discrimination with Time Inconsistent Consumers

This paper looks at the inter-temporal price discrimination game that arises when a monopolist faces naïve-time-inconsistent consumers. En route to solving this game, we introduce two new solution concepts for dynamic games where some players are time inconsistent. The first solution concept is similar in spirit to the subgame perfect Nash equilibrium, whereas the second one relies on backwards induction. Unlike in standard finite games, these solution concepts are not equivalent, even with perfect information. We then use these solution concepts to solve the inter-temporal pricing game with time inconsistent consumers. We derive implications for monopoly profits, consumer welfare and the path of prices (Coase conjecture). We conclude that time inconsistency will reduce monopoly profits and the welfare of all consumers, except of the highest valuation ones. Moreover, with time inconsistent consumers the path of prices will approach marginal cost, but at a lower ratetime inconsistency, durable goods monopoly, solution concepts

IV Estimation of Panels with Factor Residuals

This paper considers panel data regression models with weakly exogenous or endogenous regressors and residuals generated by a multi-factor error structure. In this case, the standard dynamic panel estimators fail to provide consistent estimates of the parameters. We propose a new estimation approach, based on instrumental variables, which retains the traditional attractive features of method of moments estimators. One novelty of our approach is that we introduce new parameters to represent the unobserved covariances between the instruments and the factor component of the residual; these parameters are typically estimable when N is large. Some important estimation and identification issues are studied in detail. The finite-sample performance of the proposed estimators is investigated using simulated data. The results show that the method produces reliable estimates of the parameters over various parametrizations and is robust to large values of the autoregressive parameter and/or the variance of the factor loadings.Method of Moments, Dynamic Panel Data, Factor Residuals.

Supply-side reduction policy and drug-related harm

Large-scale seizures of cocaine, heroin and amphetamine-type substances (ATS) do not result in any reduction in overdoses on these drugs or on arrests for use and possession of these drugs, according to this report. Aim: The aim of this study was to examine the question of whether seizures of heroin, cocaine or amphetamine type substances (ATS) or supplier arrests for heroin, cocaine or ATS trafficking have any effect on the ED admissions related to or arrests for use and possession of these drugs. Method: Two strategies were employed to answer the question. The first involved a time series analysis of the relationship between seizures, supplier arrests, emergency department (ED) admissions and use/possession arrests. The second involved an analysis of three specific operations identified by the NSW Crime Commission as has having had the potential to have affected the market for cocaine. Results: Over the short term (i.e. up to four months), increases in the intensity of high-level drug law enforcement (as measured by seizures and supplier arrests) directed at ATS, cocaine and heroin did not appear to have any suppression effect on ED admissions relating to ATS, cocaine and heroin, or on arrests for use and/or possession of these drugs. The three major operations dealing with cocaine listed by the NSW Crime Commission as significant (Operation Balmoral Athens, Operation Tempest and Operation Collage) did exert a suppression effect on arrests for use and possession of cocaine. Conclusions: Increases in the quantities of ATS, cocaine and heroin drugs seized by law enforcement authorities are normally a signal of increased rather than reduced supply. Very large seizures, however, may temporarily suppress consumption of these drugs. Even if drug seizures and drug supplier arrests have no short term effects on ED admissions and arrests for drug use and/or possession, they may still suppress drug consumption through risk compensation

Identification and Estimation of Differentiated Products Models using Cost Data

We propose a new methodology for estimating the demand and cost functions of differentiated products models when demand and cost data are available. The method deals with the endogeneity of prices to demand shocks and the endogeneity of outputs to cost shocks, by using variation in market size that does not need to be exogenous, and cost data. We establish nonparametric identification, consistency and asymptotic normality of our estimator. Using Monte-Carlo experiments, we show our method works well in contexts where instruments are correlated with demand and cost shocks, and where commonly-used instrumental variables estimators are biased and numerically unstable

Meropenem vs standard of care for treatment of neonatal late onset sepsis (NeoMero1): A randomised controlled trial.

BACKGROUND: The early use of broad-spectrum antibiotics remains the cornerstone for the treatment of neonatal late onset sepsis (LOS). However, which antibiotics should be used is still debatable, as relevant studies were conducted more than 20 years ago, recruited in single centres or countries, evaluated antibiotics not in clinical use anymore and had variable inclusion/exclusion criteria and outcome measures. Moreover, antibiotic-resistant bacteria have become a major problem in many countries worldwide. We hypothesized that efficacy of meropenem as a broad-spectrum antibiotic is superior to standard of care regimens (SOC) in empiric treatment of LOS and aimed to compare meropenem to SOC in infants aged 44 weeks meeting the Goldstein criteria of sepsis, were randomized in a 1:1 ratio to receive meropenem or one of the two SOC regimens (ampicillin+gentamicin or cefotaxime+gentamicin) chosen by each site prior to the start of the study for 8-14 days. The primary outcome was treatment success (survival, no modification of allocated therapy, resolution/improvement of clinical and laboratory markers, no need of additional antibiotics and presumed/confirmed eradication of pathogens) at test-of-cure visit (TOC) in full analysis set. Stool samples were tested at baseline and Day 28 for meropenem-resistant Gram-negative organisms (CRGNO). The primary analysis was performed in all randomised patients and in patients with culture confirmed LOS. Proportions of participants with successful outcome were compared by using a logistic regression model adjusted for the stratification factors. From September 3, 2012 to November 30th 2014, total of 136 patients (instead of planned 275) in each arm were randomized; 140 (52%) were culture positive. Successful outcome at TOC was achieved in 44/136 (32%) in the meropenem arm vs. 31/135 (23%) in the SOC arm (p = 0.087). The respective numbers in patients with positive cultures were 17/63 (27%) vs. 10/77 (13%) (p = 0.022). The main reason of failure was modification of allocated therapy. Treatment emergent adverse events occurred in 72% and serious adverse events in 17% of patients, the Day 28 mortality was 6%. Cumulative acquisition of CRGNO by Day 28 occurred in 4% of patients in the meropenem and 12% in the SOC arm (p = 0.052). CONCLUSIONS: Within this study population, we found no evidence that meropenem was superior to SOC in terms of success at TOC, short term hearing disturbances, safety or mortality were similar in both treatment arms but the study was underpowered to detect the planned effect. Meropenem treatment did not select for colonization with CRGNOs. We suggest that meropenem as broad-spectrum antibiotic should be reserved for neonates who are more likely to have Gram-negative LOS, especially in NICUs where microorganisms producing extended spectrum- and AmpC type beta-lactamases are circulating

Association between high and very high albuminuria and nighttime blood pressure: Influence of diabetes and chronic kidney disease

This is an author-created, uncopyedited electronic version of an article accepted for publication in Diabetes Care. The American Diabetes Association (ADA), publisher of Diabetes Care, is not responsible for any errors or omissions in this version of the manuscript or any version derived from it by third parties. The definitive publisher-authenticated version will be available in a future issue of Diabetes Care 39.10 (2016): 1729-1737 in print and online at http://care.diabetesjournals.orgNighttime blood pressure (BP) and albuminuria are two important and independent predictors of cardiovascularmorbidity andmortality. Here, we examined the quantitative differences in nighttime systolic BP (SBP) across albuminuria levels in patients with and without diabetes and chronic kidney disease. RESEARCH DESIGN AND METHODS A total of 16,546 patients from the Spanish Ambulatory Blood Pressure Monitoring Registry cohort (mean age 59.6 years, 54.9% men) were analyzed. Patients were classified according to estimated glomerular filtration rate (eGFR), as ≥60 or <60 mL/min/1.73 m2 (low eGFR), and urine albumin-to-creatinine ratio, as normoalbuminuria (<30 mg/g), high albuminuria (30-300 mg/g), or very high albuminuria (>300 mg/g). Office and 24-h BP were determined with standardized methods and conditions. RESULTS High albuminuria was associated with a statistically significant and clinically substantial higher nighttime SBP (6.8 mmHg higher than with normoalbuminuria, P < 0.001). This association was particularly striking at very high albuminuria among patients with diabetes and low eGFR (16.5 mmHg, P < 0.001). Generalized linear models showed that after full adjustment for demographic, lifestyles, and clinical characteristics, nighttime SBP was 4.8 mmHg higher in patients with high albuminuria than in those with normoalbuminuria (P < 0.001), and patients with very high albuminuria had a 6.1 mmHg greater nighttime SBP than those with high albuminuria (P < 0.001). These differences were 3.8 and 3.1 mmHg, respectively, among patients without diabetes, and 6.5 and 8 mmHg among patients with diabetes (P < 0.001). CONCLUSIONS Albuminuria in hypertensive patients is accompanied by quantitatively striking higher nighttime SBP, particularly in those with diabetes with very high albuminuria and low eGFRSpecific funding for this study analysis was obtained from FIS grants PI10/01011 PI11/02432, PI13/02321, PIE13/00045, PI14/01841, CP15/0129, and also from Fundación SENEFRO, Fondos FEDER, and by Cátedra UAM de Epidemiología y Control del Riesgo Cardiovascula

Managers as administrators: reputation and incentives

In many firms managers play the role of administrators, adding value by successfully implementing solutions to problems that the firm may face. We model the career concerns of administrators. When administrators receive the same in formation but differ in their administrative abilities, we show that they may not choose tasks that are appropriate for the problems they face. In particular, in any pure strategy equilibrium of our model, administrators do not condition their behavior on any of their private information, despite the fact that they are risk neutral and know their administrative ability. We thus identify a novel source of incentive conflicts in firms. We also examine the robustness of these results to various extensions

Celebrating 40 years of panel data analysis:Past, present and future

The present special issue features a collection of papers presented at the 2017 International Panel Data Conference, hosted by the University of Macedonia in Thessaloniki, Greece. The conference marked the 40th anniversary of the inaugural International Panel Data Conference, which was held in 1977 at INSEE in Paris, under the auspices of the French National Centre for Scientific Research. As a collection, the papers appearing in this special issue of the Journal of Econometrics continue to advance the analysis of panel data, and paint a state-of-the-art picture of the field. (c) 2020 Elsevier B.V. All rights reserved