Discrete choice models of family labour supply

Choice Theory;Labour Supply

Asymmetric adaptations to energy price changes

The effectiveness of policies to reduce the use of energy depend on the elasticity of substitution between the various inputs and on the rate of technological progress. This paper presents a theoretical model emphasising energy investments’ characteristics of uncertainty and irreversibility that result in testable hypotheses concerning the relative values of substitution parameters and rates of technological change in periods of high and increasing energy prices and in periods of low prices. Estimation results for a panel of sectors of the Dutch economy show that the elasticity of substitution between energy and other inputs is low in periods of low energy prices, whereas it is significantly higher in the preceding period of high and increasing energy prices. Furthermore, energy-saving technological progress in periods of high and increasing energy prices is also significantly higher than if energy prices are low and falling. The regression results suggest that, due this asymmetric response of firms to changes in energy prices, taxing energy in the current period of low energy prices will not yield substantial reductions in energy use of Dutch industry.

The Fixed-Effects Zero-Inflated Poisson Model with an Application to Health Care Utilization

Response variables that are scored as counts and that present a large number of zeros often arise in quantitative health care analysis. We define a zero-in flated Poisson model with fixed-effects in both of its equations to identify respondent and health-related characteristics associated with health care demand. This is a new model that is proposed to model count measures of health care utilization and account for the panel structure of the data. Parameter estimation is achieved by conditional maximum likelihood. An application of the new model is implemented using micro level data from the 2004-2006 Survey of Health, Ageing and Retirement in Europe (SHARE), and compared to existing panel data models for count data. Results show that separately controlling for whether outcomes are zero or positive in one of the two years does make a difference for counts with a larger number of zeros.Count Data;Zero-In ated Poisson Model;Fixed-effects;SHARE

Female labour supply in farm households: Farm and off-farm participation

Female Workers;Farms;Labour Supply

Parametric and semi-parametric modelling of vacation expenditures

Consumer Choice;Recreation

Mode and Context Effects of Measuring Household Assets

Differences in answers in Internet and traditional surveys can be due to selection, mode, or context effects. We exploit unique experimental data to analyze mode and context effects controlling for arbitrary selection. The Health and Retirement Study (HRS) surveys a random sample of the US 50+ population, with CAPI or CATI core interviews once every two years. In 2003 and 2005, random samples were drawn from HRS respondents in 2002 and 2004 willing and able to participate in an Internet interview. Comparing core and Internet survey answers of the same people, we analyze mode and context effects, controlling for selection. We focus on household assets, for which mode effects in Internet surveys have rarely been studied. We find some large differences between the first Internet survey and the other three surveys which we interpret as a context and question wording effect rather than a pure mode effect.Internet surveys;CAPI;CATI;portfolio choice

A Test for Anchoring and Yea-Saying in Experimental Consumption Data

In the experimental module of the AHEAD 1995 data, the sample is randomly split into respondents who get an open-ended question on the amount of total family consumption - with follow-up unfolding brackets (of the form: is consumption $X or more?) for those who answer don't know' or refuse' - and respondents who are immediately directed to unfolding brackets. In both cases, the entry point of the unfolding bracket sequence is randomized. These data are used to develop a nonparametric test for whether people make mistakes in answering the first bracket question, allowing for any type of selection into answering the open-ended question or not. Two well-known types of mistakes are considered: anchoring and yea-saying (or acquiescence). While the literature provides ample evidence that the entry point in the first bracket question serves as an anchor for follow-up bracket questions, it is less clear whether the answers to the first bracket question are already affected by anchoring. We reject the joint hypothesis of no anchoring and no yea-saying at the entry point. Once yea-saying is taken into account

Does Income Taxation Affect Partners’ Household Chores?

We study the impact of income taxation on both partners‟ allocation of time to market work and unpaid house work in households with two adults. We estimate a structural household utility model in which the marginal utilities of leisure and house work of both partners are modelled as random coefficients, depending on observed and unobserved characteristics of the household and the two partners. We use a discrete choice model with choice sets of 2,401 points for each couple, distinguishing seven market work intervals and seven house work intervals for each partner. The model is estimated using data for France, which taxes incomes of married couples jointly, like, for instance, Germany and the US. We find that both partners‟ market and non-market time allocation decisions are responsive to changes in the tax system or other policy changes that change the financial incentives. Women‟s time allocation is more responsive to the own and the partner‟s wage rate than men‟s. Tax policy simulations suggest that moving from joint taxation for married couples to separate taxation of each spouse would go a small step in the direction of equalizing market and non-market work of spouses. Selective taxation with smaller tax rates for women than for men would magnify these effects.time use;taxation;labour supply;discrete choice models

Family labour supply and taxes in Ireland

Taxation;Labour Supply

Birth Spacing, Child Survival and Fertility Decisions: Analysis of Causal Mechanismsa

Abstract: We jointly analyze infant mortality, birth spacing, and total fertility of children in a rural area in Bangladesh, using longitudinal data from the Health and Demographic Surveillance System (HDSS) in Matlab. To distinguish causal mechanisms from unobserved heterogeneity and reverse causality, we use dynamic panel data techniques. We compare the results in a treatment area with extensive health services and a comparison area with standard health services. Simulations using the estimated models show how fertility and mortality can be reduced by, for example, breaking the causal link that leads to a short interval after a child has died. Eliminating this effect would reduce fertility and increase birth intervals, resulting in a fall in mortality by 0.14 and 2.45 per 1000 live births in treatment and comparison area, respectively. The effects of the numbers of (surviving) boys and girls on birth spacing provide evidence of son preference: having more boys has a stronger effect on the birth interval than having more girls, though both effects are significantly positive. A simulation suggests that if families would behave as if their all children were sons, fertility levels would be reduced by 3.5% and 5.7% in the ICDDR,B and comparison areas, respectively.child mortality;birth spacing;fertility;dynamic panel data models;Bangladesh