The debate between “structural” and “reduced-form”approaches has generated substantial controversy in applied economics. This article reviews a recent literature in public economics that combines the advantages of reduced-form strategies –transparent and credible identi…cation –with an important advantage of structural models – the ability to make predictions about counterfactual outcomes and w...

The debate between “structural” and “reduced-form”approaches has generated substantial controversy in applied economics. This article reviews a recent literature in public economics that combines the advantages of reduced-form strategies –transparent and credible identi…cation –with an important advantage of structural models – the ability to make predictions about counterfactual outcomes and w...

Remerciements J'exprime ma profonde gratitudè a mon promoteur, le Professeur Michel Mouchart pour son encadrement continu, ses encouragements, son dynamisme ainsi qu'` a la per-tinence de ses remarques. Je tiens aussì a le remercier profondément pour son soutien moral au cours de situations difficiles. des heures de travail !! C'estégalementà tous les membres de l'Institut de Statistique et plu...

For decades, economists have used the hedonic model to estimate demands for the implicit characteristics of differentiated commodities. The traditional cross-sectional approach can recover marginal willingness to pay for characteristics, but has faltered over a difficult endogeneity problem for non-marginal welfare measures. I show that when marginal prices can be reliably estimated, and when p...

SFI Working Papers contain accounts of scienti5ic work of the author(s) and do not necessarily represent the views of the Santa Fe Institute. We accept papers intended for publication in peer-reviewed journals or proceedings volumes, but not papers that have already appeared in print. Except for papers by our external faculty, papers must be based on work done at SFI, inspired by an invited vis...

The debate between “structural” and “reduced-form”approaches has generated substantial controversy in applied economics. This article reviews a recent literature in public economics that combines the advantages of reduced-form strategies –transparent and credible identi…cation –with an important advantage of structural models – the ability to make predictions about counterfactual outcomes and w...

The debate between “structural” and “reduced-form”approaches has generated substantial controversy in applied economics. This article reviews a recent literature in public economics that combines the advantages of reduced-form strategies –transparent and credible identi…cation –with an important advantage of structural models – the ability to make predictions about counterfactual outcomes and w...

The debate between “structural” and “reduced-form”approaches has generated substantial controversy in applied economics. This article reviews a recent literature in public economics that combines the advantages of reduced-form strategies –transparent and credible identi…cation –with an important advantage of structural models – the ability to make predictions about counterfactual outcomes and w...

In the last lecture we saw that the likelihood ratio statistic was optimal for testing between two simple hypotheses. The test simply compares the likelihood ratio to a threshold. The “optimal” threshold is a function of the prior probabilities and the costs assigned to different errors. The choice of costs is subjective and depends on the nature of the problem, but the prior probabilities must...

The conceptual framework for causes presented here is intended neither as a review nor an expansion of knowledge, but rather as a viewpoint which bridges the gap between metaphysical notions of cause and basic epidemiologic parameters. The focus, then, is neither metaphysics nor epidemiology, but the gulf between them. In the same spirit as recent discussion on these pages about definitions of ...