Journal Article Commodity Price Stabilization: The Massell Model and Multiplicative Disturbances Get access Christopher L. Gilbert Christopher L. Gilbert Oxford University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 101, Issue 3, August 1986, Pages 635–640, https://doi.org/10.2307/1885702 Published: 01 August 1986

Gailen L. Hite, The Timing and Substance of Divestiture Announcements: Individual, Simultaneous and Cumulative Effects: Discussion, The Journal of Finance, Vol. 41, No. 3, Papers and Proceedings of the Forty-Fourth Annual Meeting of the America Finance Association, New York, New York, December 28-30, 1985 (Jul., 1986), pp. 696-697

This papjer proposes alternatives to maximum likelihood estimation of the censored and truncated regression models (known to economists as "Tobit" models) .The proposed estimators are based on symmetric censoring or truncation of the upper tail of the distribution of the dependent variable.Unlike methods based on the assumption of identically distributed Gaussian errors/ the estimators are consistent and asymptotically normal for a wide class of error distributions and for heteroscedasticity of unknown form.The paper gives the regularity conditions and proofs of these large sample results, demonstrates how to construct consistent estimators of the asymptotic covariance matrices, and presents the results of a simulation study for the censored case.Extensions and limitations of the approach are also considered.

This paper investigates the positive wage-firm size relationship using a sample of workers performing the same jobs in different-sized firms. Controlling for skill differences, wages are still found to be higher in larger firms. Using an estimate of the marginal rate of substitution of income for leisure as a measure of job disutility, the difference in wages between large and small firms is found to be greater than the difference in disutility, ruling out compensating differentials as the sole cause of the wage-size relationship. Hence the argument that labor extracts some of the higher profits of larger firms is plausible.