School of Economics: Recent submissions
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Estimation of Forward-Looking Relationships in Closed Form: An Application to the New Keynesian Phillips Curve
Published 2011-06-01We illustrate the importance of placing model-consistent restrictions on expectations in the estimation of forward-looking Euler equations. In two-stage limited-information settings where first-stage estimates are used to ...Open AccessWorking Paper -
Medical Malpractice and Physician Liability Under a Negligence Rule
Published 2011-03-01A model of costly medical malpractice claims, based on Bayes Rule, is developed to examine the effects of physicians being liable for actual damage under a negligence rule. This model is consistent with empirical evidence ...Open AccessWorking Paper -
A Response to Cogley and Sbordone’s Comment on "Closed-Form Estimates of the New Keynesian Phillips Curve with Time-Varying Trend Inflation"
Published 2011-06-01In their 2010 comment (which we refer to as CS10), Cogley and Sbordone argue that: (i) our estimates are not entirely closed form, and hence are arbitrary; (ii) we cannot guarantee that our estimates are valid, while their ...Open AccessWorking Paper -
The Risk and Incentives Trade-off in the Presence of Heterogeneous Managers
Published 2002-04-01Agency theory predicts a negative relationship between risk and incentives, yet recent empirical evidence has not consistently found such a relationship. In fact, some researchers have found a positive relationship. By ...Open AccessWorking Paper -
DEGREES OF COMPETITION, THE RATE OF RETURN AND GROWTH FROM A CLASSICAL/SRAFFIAN PERSPECTIVE
Published 2011-02-01The purpose of the paper is a clarification of the concept of competition from a classical/ Sraffian perspective; including an elucidation of how a classical/Sraffian approach might go about defining the degree of competition. ...Open AccessWorking Paper