This study examines the Treasury's experiment with single-price bond auctions in the mid-1970s and finds that, controlling for factors unrelated to auction technique, markups of auction average rates over when-issued rates shortly after auctions were a statistically significant seven to eight basis points higher at single-price auctions than at discriminating-price auctions. These results suggest that single-price auctions raised Treasury borrowing costs by roughly 3/4 percent of the issuing price of auctioned securities.

Over the past decade, a substantial literature on methods for the estimation of discrete choice dynamic programming (DDP) models of behavior has developed. However, the implementation of these methods can impose major computational burdens because solving for agents' decision rules often involves high dimensional integrations that must be performed at each point in the state space. In this paper we develop an approximate solution method that consists of: (1) using Monte Carlo integration to stimulate the required multiple integrals at a subset of the state points, and (2) interpolating the non-simulated values using a regression function. The overall performance of this approximation method appears to be excellent.

Charles P. Himmelberg, Bruce C. Petersen, R & D and Internal Finance: A Panel Study of Small Firms in High-Tech Industries, The Review of Economics and Statistics, Vol. 76, No. 1 (Feb., 1994), pp. 38-51

M. Ishaq Nadiri, Theofanis P. Mamuneas, The Effects of Public Infrastructure and R & D Capital on the Cost Structure and Performance of U.S. Manufacturing Industries, The Review of Economics and Statistics, Vol. 76, No. 1 (Feb., 1994), pp. 22-37

John A. Bishop, John P. Formby, Paul D. Thistle, Convergence and Divergence of Regional Income Distributions and Welfare, The Review of Economics and Statistics, Vol. 76, No. 2 (May, 1994), pp. 228-235

The findings in this paper provide some insight into how small firms are able to innovate. Using a production function approach to relate knowledge generating inputs to innovative output, the empirical results suggest that small firms are the recipients of R&D spillovers from knowledge generated in the R&D centers of their larger counterparts and in universities. Such R&D spillovers are apparently more decisive in promoting the innovative activity of small firms than of large corporations.