Paul A. Ruud, Sufficient Conditions for the Consistency of Maximum Likelihood Estimation Despite Misspecification of Distribution in Multinomial Discrete Choice Models, Econometrica, Vol. 51, No. 1 (Jan., 1983), pp. 225-228

[This paper presents an implicit-contract model in which workers are allowed to differ in both their productive abilities and their preferences. It is shown that if firms are able to vary hours costlessly among their workers, workers are risk averse, and there are no outside payments to laid-off workers, then efficient contracts between firms and their workers will never provide for layoff unemployment. If, however, such hours variations are not costless, layoffs are no longer generally inefficient since they are an alternative means by which firms can adjust the labor inputs of selected groups of workers.]

An index of Inequality is constructed which decomposes into two components, corresponding to vertical and "horizontal" equity respectively.Horizontal equity Is defined in terms of changes in the ordering of a distribution.The proposed index is a function to two inequality aversion parameters.One empirical application is for comparison of a pre-tax distribution with a post-tax distribution, and an example of this is given for the distribution of incomes in the UK in 1977.There is a trade-off between "horizontal" and vertical equity, and for particular combinations of the inequality aversion parameters the original distribution.willbe preferred to the final distribution.The paper concludes with an application of the proposed index to a model of optimal taxation.

This paper is concerned with the efficient estimation of structural parameters in closed linear systems of higher order stochastic differential equations when the data are in discrete form and the model generally includes both stock and flow variables. A general existence and uniqueness theorem for the solution of such a system is proved and used in the rigorous derivation of exact discrete models satisfied by the various types of data. It is shown how these models can be used in the computation of various asymptotically efficient estimates obtained by the maximization of the Gaussian likelihood or approximations to it.

IN THIS PAPER we present a multiperiod model of investment and reinvestment in which the investor's goal is the maximization of terminal wealth over the finite horizon in which economic activity occurs. The model entails the absence of risk, constant returns-to-scale, stationarity, and a borrowing constraint. The main point is to characterize the relationship between an investment project's asymptotic (internal) growth rate and its set of internal-rates-of-return, thereby provid

[A model is constructed in which a potential entrant uses prices to make inferences about industry conditions. Stochastic demand shocks occur after the incumbent firm's action, so that prices reveal only statistical information about the incumbent's private information. The equilibrium differs from standard signalling equilibria in that it can be unique, it depends on prior beliefs, and it is rich in comparative statics. Conditions are obtained for entry threats to result in limit pricing, lower entry probabilities, and lower expected profits for potential entrants.]

This picture is greatly complicated when restrictions on the structural disturbance variances and covariances, (henceforth "covariance restrictions") are allowed.Koopmans Rubin, and Leipnik (1950) recognized the usefulness of such restrictions for identification and demonstrated their equivalence to bilinear restrictions on the coefficients.This work was pursued by Wegge (1965) j Rothenberg (1971), and especially Fisher (1963, 1965), surveyed in Fisher (19-66, Chapters 3 and 4).Structural estimation is also complicated by covariance restrictions: as pointed out by Rothenberg and Leenders (1964), system instrumental variables estimators (3SLS) are asymptotically inefficient when covariance i restrictions are present.Two features of these results are (i) the absence of useful necessary and sufficient conditions for identifiability in the presence of covariance restrictions, and (ii) the disappearance of the link between restrictions required for identification and instrumental variables required for estimation.The problem of incorporating covariance restric- tions Into the theory of identification and estimation is thus Incomplete.In this and a companion paper on estimation (Hausman-Taylor (1981)), we provide a simple, complete, and useful solution to the problem In terms of instrumental variables .In the present paper, we derive necessary and sufficient conditions for identifiability in linear simultaneous equations models subject to linear restrictions on the coefficients and covariances.The result, in practical

The effects of minimum wage legislation on the employment and wage rates of youth are estimated using a new statistical approach. We find that without the minimum, not only would the percent of out-of-school youth who are employed be 4 to 6 percent higher than it is, but also that these youth would earn more.