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This paper empirically assesses the wage effects of the Job Corps program, one of the largest federally-funded job training programs in the United States. Even with the aid of a randomized experiment, the impact of a training program on wages is difficult to study because of sample selection, a pervasive problem in applied micro-econometric research. Wage(More)
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Estimation of demand is at the heart of many recent studies that examine questions of market power, mergers, innovation, and valuation of new brands in differentiated-products markets. This paper focuses on one of the main methods for estimating demand for differentiated products: randomcoefŽcients logit models. The paper carefully discusses the latest(More)
This paper investigates consumer inertia in health insurance markets, where adverse selection is a potential concern. We leverage a major change to insurance provision that occurred at a large firm to identify substantial inertia, and develop and estimate a choice model that also quantifies risk preferences and ex ante health risk. We use these estimates to(More)
Temporary price reductions (sales) are common for many goods and naturally result in large increases in the quantity sold. Demand estimation based on temporary price reductions may mismeasure the long-run responsiveness to prices. In this paper we quantify the extent of the problem and assess its economic implications. We structurally estimate a dynamic(More)
We estimate a bargaining model of competition between hospitals and managed care organizations (MCOs) and use the estimates to evaluate the effects of hospital mergers. We find that MCO bargaining restrains hospital prices significantly. The model demonstrates the potential impact of coinsurance rates, which allow MCOs to partly steer patients towards(More)
Nonlogit maximum-likelihood estimators are inconsistent when using data on a subset of the choices available to agents. I show that the semiparametric, multinomial maximum-score estimator is consistent when using data on a subset of choices. No information is required for choices outside of the subset. The required conditions about the error terms are the(More)
A central part of the ‘‘new empirical industrial organization’’ has been the study of market power in homogenous-product industries. This paper discusses extension of these methods to differentiated-products industries. The requirements for identification of conjectural variation parameters are shown to be hard to satisfy in practice. An alternative(More)