This paper considers estimation of truncated.and censored regression models with fixed effects. Up until now, no estimator has been shown to be consistent as the cross-section dimension increases with the time dimension fixed. Trimmed least absolute deviations and trimmed least squares estimators are proposed for the case where the panel is of length two, and it is proven that they are consistent and asymptotically normal. It is not necessary to maintain parametric assumptions on the error terms to obtain this result. A small scale Monte Carlo study demonstrates that these estimators can perform well in small samples. Copyright 1992 by The Econometric Society.

Robert E. Cumby, John Huizinga, Testing the Autocorrelation Structure of Disturbances in Ordinary Least Squares and Instrumental Variables Regressions, Econometrica, Vol. 60, No. 1 (Jan., 1992), pp. 185-195

One elicitation diagnostic identifies a family of prior distributions that are so diffuse that they are practically equivalent to the completely diffuse prior. Another elicitation diagnostic identifies a family of prior distributions that concentrate enough mass in the neighborhood of zero that they are practically equivalent to the dogmatic prior that sets a parameter exactly equal to zero. If either question thus posed can be answered in the affirmative then there is no need to go to the expense of a more accurate elicitation of the prior distribution. Copyright 1992 by The Econometric Society.

Quotas are the predominant means of protection in developed countries, with quota rents commonly shared between exporter and importer. This paper derives shadow prices appropriate to evaluating trade reform under these circumstances and provides a number of useful sufficient conditions for welfare-improving "piecemeal" reform. In doing so, the authors apply the distorted (quantity-constrained) expenditure function and use implicit separability to derive more powerful results than have previously been available.