Experimental data have consistently shown diversity in beliefs as well as in actions among experimental subjects. This paper presents and compares alternative behavioral econometric models for the characterization of player heterogeneity, both between sub-populations of players and within subpopulations. In particular, two econometric models of diversity within sub-populations of players are in...

The housing and mortgage markets have long been considered to be markets that may not always be in equilibrium, and many econometric models of the housing and mortgage markets have tried in one way or another to account for disequilibrium effects. In this paper a critique of previous models of the housing and mortgage markets is made. The main argument of the paper is that disequilibrium effect...

This paper presents the theoretical development of new threshold autoregressive models based on trended time series. The theoretical arguments underlying the models are outlined and a nonlinear economic model is used to derive the speci cation of the empirical econometric models. Estimation and testing issues are considered and analysed. Additionally we apply the models to the empirical investi...

This paper considers identification and estimation of structural interaction effects in a social interaction model. The model allows unobservables in the group structure, which may be correlated with included regressors. We show that both the endogenous and exogenous interaction effects can be identified if there are sufficient variations in group sizes. We consider the estimation of the model ...

This paper analyzes the various econometric models that have been used to identify asymmetric pricing in the retail gasoline industry, and also documents empirical regularities in the market. I find that a standard error-correction model coupled with daily price data is best suited to analyze asymmetric price adjustments. Moreover, temporally aggregated data can severely bias parameter estimate...

This paper investigates the relationship between short-term and long-term in‡ation expectations using daily data on in‡ation compensation. We use a ‡exible econometric model which allows us to uncover this relationship in a data-based manner. We relate our …ndings to the issue of whether in‡ation expectations are anchored, unmoored or contained. Our empirical results indicate no support for eit...