Consider a mechanism design setting in which agents acquire costly information about an unknown, payoff-relevant state of nature. Information gathering is covert and the agents’ information is correlated. We investigate conditions under which (i) efficiency and (ii) full surplus extraction are Bayesian incentive compatible and interim individually rational. JEL Classification: D44, D82

We introduce a robust classification method using Bayesian predictive distribution (Bayesian predictive classification, referred to as BPC) into speech recognition. We and others have recently proposed a total Bayesian framework for speech recognition, Variational Bayesian Estimation and Clustering for speech recognition (VBEC). VBEC includes an analytical derivation of approximate posterior di...

Oil price shocks are the major source of economic instability in oil exporting developing countries, including Iran. In this paper a Multi Sector Dynamic Stochastic General Equilibrium model, with emphasis on optimization of oil sector as a producing sector is designed. Furthermore, an optimizing import sector is introduced into the model by considering the price rigidity in imported goods as a...

JEL Classification Code(s): J 31, J 71) "Perceptions of Discrimination, Effort to Obtain Psychological Balance, and Relative Wages: Can We Infer a Happiness Gradient?" There is a substantial literature that finds a linkage between happiness and relative economic well being as measured by earnings or wages. There is also a well documented racial gap in wages. One explanation for this is disparat...

This paper discusses estimation of causal effects of non-randomly assigned binary treatments on binary outcomes. The approach is full information maximum likelihood estimation of endogenously switching nonlinear regressions with a multivariate Student’s-t error structure. An application measures the effect of problem drinking on probability of employment. JEL Classification: I1, C3 I thank the ...

Generalized Selection Bias and The Decomposition of Wage Differentials The major contribution of this paper is ending a new and flexible way to measure the effects of selection on log-wages. In this context, we offer a general approach to performing decomposition analysis when selection effects are present. We call the difference between unconditional and conditional expectations of the log-wag...