The personal computer Central Processing Unit (CPU) has undergone a dramatic improvement in quality, accompanied by an equally remarkable drop in prices in the 1990s. How have these developments in the CPU market affected consumer welfare? This paper estimates demand for CPUs and measures consumer welfare, using the pure characteristics demand model. The model is based on a quasilinear utility ...

The European cherry fruit fly, Rhagoletis cerasi (L.) (Diptera: Tephritidae), is the key pest of sweet and sour cherries in many European countries and west Asia. It is a univoltine species of the west Palaearctic zone that undergoes obligatory pupal diapause. In this study, the development of R. cerasi pupae that were brought to an optimum temperature for postdiapause development following a l...

Authenticated Key Exchange (AKE) is a cryptographic scheme with the aim to establish a high-entropy and secret session key over a insecure communications network. Password-Authenticated Key Exchange (PAKE) assumes that the parties in play share a simple password, which is cheap and human-memorable and is used to achieve the authentication. PAKEs are practically relevant as these features are ex...

Let {X, n ^! 01 be an irreducible time-homogeneous MC with transition probability matrix P = (P1 ). The quantity E(X +1 X X = i ) is of interest because it gives intuitively appealing and easily computed conditions for positive recurrence. The condition lim sup E(X+ 1 X X = i) <0 was given by Pakes and the main result i-* of this paper is sharpening of this criterion for periodic MC with transi...

We study iterated Galton-Watson processes, introduced by Gawel and Kimmel as models of the number of repeats of DNA triplets during some genetic disorders. When the process (Xn)n involves some thinning, the extinction Xn → 0 and the explosion Xn → ∞ can have positive probability simultaneously. When the underlying (simple) Galton-Watson process is nondecreasing with mean m, conditional on the e...

This appendix provides the formal proof of Proposition 1, an analytic calculation showing that indivisible x-goods are not essential for our main results, and a numerical example showing that our results can also be obtained in a random coefficients discrete choice demand system like that of Berry, Levinsohn and Pakes (1995), commonly used in the industrial organization literature. The appendix...

We extend the Berry, Levinsohn and Pakes (BLP, 1995) random coefficients discretechoice demand model, which underlies much recent empirical work in IO. We add interactive fixed effects in the form of a factor structure on the unobserved product characteristics. The interactive fixed effects can be arbitrarily correlated with the observed product characteristics (including price), which accommod...

We show that control function estimators (CFEs) of the firm production function, such as Olley-Pakes, may be biased when productivity evolves with a firmspecific drift, in which case the correctly specified control function will contain a firm-specific term, omitted in the standard CFEs. We develop an estimator that is free from this bias by introducing firm fixed effects in the control functio...

The recent Common Agricultural Policy (CAP) reform of the financial support mechanism for farms was introduced in 2005. According to this reform, the level of support that each farm receives is paid regardless of the current level of production. The decoupling of direct payments is expected to change production decisions, as farmers will change their mainly subsidy revenue maximization objectiv...

We propose a model for demand estimation in multi-agent, differentiated product settings and present an estimation algorithm that uses reversible jump MCMC techniques to classify agents’ types. Our model extends the popular setup in Berry, Levinsohn and Pakes (1995) to allow for the data-driven classification of agents’ types using agent-level data. We focus on applications involving data on ag...