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This paper empirically analyzes di erent e ects of advertising in a nondurable, experience good market. A dynamic learning model of consumer behavior is presented in which we allow both \informative" e ects of advertising and \prestige" or \image" e ects of advertising. This learning model is estimated using consumer level panel data tracking grocery(More)
This paper provides an empirical analysis of how the U.S. Social Security and Medicare insurance system affect the labor supply of older males in the presence of incomplete markets for loans, annuities, and health insurance. We estimate a detailed dynamic programming (DP) model of the joint labor supply and Social Security acceptance decision, focusing on a(More)
This paper introduces random versions of successive approximations and multigrid algorithms for computing approximate solutions to a class of finite and infinite horizon Markovian decision problems (MDPs). We prove that these algorithms succeed in breaking the “curse of dimensionality” for a subclass of MDPs known as discrete decision processes (DDPs).
SVARs are widely used for policy analysis and to provide stylized facts for dynamic general equilibrium models. Yet there have been no workable rank conditions to ascertain whether an SVAR is globally identified. When identifying restrictions, such as long-run restrictions, are imposed on impulse responses, there have been no efficient algorithms for(More)
This paper reports the results of a series of tournaments held at the Santa Fe Institute beginning in March, 1990 in which computer programs played the roles of buyers and sellers in a simplified synchronized double auction market. We show that despite the decentralized nature of the trading process and traders' incomplete information about supply and(More)
The Pre-School Activities Inventory (PSAI) is a new psychometric scale for the assessment of gender role behavior in young children. Its design and test specification are reported, and the piloting and item analysis are described. Evidence of reliability is given, and several validation studies are reported, as are data on age standardization and norming.(More)
The widely-used estimator of Berry, Levinsohn and Pakes (1995) produces estimates of consumer preferences from a discrete-choice demand model with random coefficients, market-level demand shocks and endogenous prices. We derive numerical theory results characterizing the properties of the nested fixed point algorithm used to evaluate the objective function(More)
Theories in political economy depend critically on assumptions about motivations of politicians. Our analysis starts from the premise that politicians, like other economic agents, are rational individuals who make career decisions by comparing the expected returns of alternative choices. The main goal of the paper is to quantify the returns to a career in(More)