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Estimating structural models is often viewed as computationally difficult, an impression partly due to a focus on the nested fixed-point (NFXP) approach.We propose a new constrained optimization approach for structural estimation.We show that our approach and the NFXP algorithm solve the same estimation problem, and yield the same estimates.Computationally, our approach can have speed advantages because we do not repeatedly solve the structural equation at each guess of structural parameters.Monte Carlo experiments on the canonical Zurcher bus-repair model demonstrate that the constrained optimization approach can be significantly faster.

In this paper we analyze an aggregative general equilibriiri model in which the use of money is motivated by a cash-in-advance constraint, applied to purchases of a subset of consumption goods. The system is subject to both real and nxnetary shocks, which are economy-wide and observed by all. We develop methods for verifying the existence of, characterizing, and explicitly calculating equilibria. A main result of the analysis is that current money growth affects the current real allocation only insofar as it affects expectations about future money growth, i.e., only through its value as a signal.

[The standard two-period consumer choice problem, where current consumption must be decided upon subject to uncertainty about future income and prices is considered in this paper. Previous analyses have been limited to an economy where either there is only one commodity or consumer preferences have a restrictive form. The primary objective of this paper is to generalize these analyses so that these limitations are eliminated. This is accomplished by applying the theory of duality.]

The durabilities of a consumption good produced in a perfectly competitive market or by a monopoly are compared. The analysis is conducted in terms of firm profit maximization in a Cournot industry. Conclusions are based on the properties of the entire optimal path rather than on the steady state alone.

[The exact finite sample properties of an asymptotically unbiased but nonconsistent estimator of a structural variance are examined briefly.]