We show that one of the main results in Chen and Sönmez (2006, 2008) [6,7] does no longer hold when the number of recombinations is sufficiently increased to obtain reliable conclusions. No school choice mechanism is significantly superior in terms of efficiency. © 2010 Elsevier Inc. All rights reserved. JEL classification: C70; C13; C91

In randomized controlled trials, treatment is often assigned by stratified randomization. I show that among all randomization schemes treat units with probability one half, a certain matched-pair design achieves the maximum statistical precision for estimating average effect. an important special case, optimal pairs according to baseline outcome. simulation study based on datasets from ten this...

We propose a method of moment estimator for a stochastic frontier model in which one of the independent variables is measured with errors. The estimator requires only minimal distributional assumption on the measurement error, has no need for additional data, and is computationally inexpensive. A Monte Carlo study and an empirical example show favorable performances by this estimator. JEL Class...

This paper shows that many estimators of thresholds in ordered response models exist, because binary choice location estimators can be converted into threshold estimators. A new threshold estimator is proposed that is consistent under more general conditions. An extension to random thresholds is provided. JEL codes: C14, C25, C13.

We examine individuals’ distributional orderings in a number of contexts. This is done by using a questionnaire-experiment that is presented to respondents in any one of seven “flavours” or interpretations of the basic distributional problem. The flavours include inequality, risk, social welfare and justice. The issue of personal involvement in the distributional comparison is explicitly addres...

In the single-IV model, researchers commonly rely on t-ratio-based inference, even though literature has quantified its potentially severe large-sample distortions. Building Stock and Yogo (2005), we introduce tF critical value function, leading to a standard error adjustment that is smooth function of first-stage F-statistic. For one-quarter specifications in 61 AER papers, corrected errors ar...

This Paper describes a procedure for constructing theory restricted prior distributions for BVAR models. The Bayes Factor, which is obtained without any additional computational effort, can be used to assess the plausibility of the restrictions imposed on the VAR parameter vector by competing DSGE models. In other words, it is possible to rank the amount of abstraction implied by each DSGE mode...

We derive a closed form expression for the asymptotic distribution of the LIML estimator for the coefficients of both endogenous and exogenous variables in a partially identified linear structural equation. We extend previous results of Phillips (1989) and Choi and Phillips (1992) where the focus was on IV estimators. We show that partial failure of identification affects the LIML in that its m...

The paper suggests a CUSUM-type test for time-varying parameters in a recently proposed spatial autoregressive model for stock returns and derives its asymptotic null distribution as well as local power properties. As can be seen from Euro Stoxx 50 returns, a combination of spatial modelling and change point tests allows for superior risk forecasts in portfolio management. JEL Classification: C...

Canonical Correlation and Assortative Matching: A Remark In the context of the Beckerian theory of marriage, when men and women match on a singledimensional index that is the weighted sum of their respective multivariate attributes, many papers in the literature have used linear canonical correlation, and related techniques, in order to estimate these weights. We argue that this estimation tech...