This paper applies the inverse probability weighted (IPW) least-squares method to estimate the effects of treatment on total medical cost, subject to censoring, in a panel-data setting. IPW pooled ordinary-least squares (POLS) and IPW random effects (RE) models are used. Because total medical cost might not be independent of survival time under administrative censoring, unweighted POLS and RE c...

Two-thirds of education production function studies relating learning to school and parental inputs also include parental income. This confounds demand and production functions, since in demand functions income determines the school inputs used in the production function. In a comprehensive review of the literature, we show that with this misspecification significantly positive school input coe...

This paper considers functional central limit theorems for stationary absolutely regular mixing processes. Bounds for the entropy with bracketing are derived using recent results in Nickl and Pötscher (2007). More specifically, their bracketing metric entropy bounds are extended to a norm defined in Doukhan, Massart and Rio (1995, henceforth DMR) that depends both on the marginal distribution o...

This paper examines the labour supply behaviour of married women in France. Estimating a model with tax parameter variation, careful re-examination of the treatment of the unearned income variable and taking account of education in moJelling preferences result in substantially lower elasticities than found in our previous empirical analysis. It turns out that distinguishing between part-time, f...

This paper applies recently-developed methods for estimating dynamic games to estimate the costs incurred when radio stations change format (i.e., their positioning in a horizontallydifferentiated products industry). The size of format switching costs have potentially important implications for merger and regulatory policy in this industry. Preliminary estimates indicate that sunk format switch...

A general class of tests designed to detect conditional mean misspecification for cross section or time series applications is proposed. The tests are derived from a particular application of the encompassing principle. The resulting conditional mean encompassing (CME) tests contain as special cases a version of the Lagrange Multiplier test for nested models, a new test in the presence of nonne...

Practical considerations for choosing between Tobit, symmetrically censored least squares (SCLS) and censored least absolute deviations (CLAD) estimators are offered. Practical considerations deal with when a Hausman test is better than a conditional moment test for judging the severity of a misspecification, the need to bootstrap the sampling distributions of theHausman tests, what to look for...

This paper proposes a variant of the classical HAUSMAN specifi cation test commonly employed to decide whether the estimation of a random-eff ects model is a viable alternative to estimating fi xed eff ects. Whereas the classical test probes the equality of fi xedand random eff ects, the proposed variant focuses on the equality of between-groups and fi xed-eff ects coeffi cients. While both tes...

The main objective of this research consists in assessing the impact level local fiscal decentralization on employment growth municipalities Kosovo. To achieve goal study, several panel datasets have been constructed, which include all 38 Kosovo and cover period from 2012 to 2020. This study also uses models test relationship between growth; however, Hausman Taylor IV estimator is estimation st...

The Durbin-Wu-Hausman (DWH) test is a commonly used test for endogeneity in instrumental variables (IV) regression. Unfortunately, the DWH test depends, among other things, on assuming all the instruments are valid, a rarity in practice. In this paper, we show that the DWH test often has distorted size even if one IV is invalid. Also, the DWH test may have low power when many, possibly high dim...