Search results for "Unobservable"
showing 7 items of 17 documents
Geneses of Labour Market Turnover: Job Search and Entrepreneurial Aspirations On-the-job
2005
In this paper we study the labour market behavior of employed individuals that have entrepreneurial aspirations in addition to aspirations to switch job. We analyze empirically these two “search processes” side-by-side and report three main findings: First, neither entrepreneurial aspirations nor aspirations to switch job are uncommon, but only few are engaged in both search processes. Second, the two processes are not alike: It is more difficult to empirically explain entrepreneurial aspirations than aspirations to switch job. Only few observable characteristics of the employed are related to both processes. Varied experience and job dissatisfaction are directly related to the probability …
THE ROLE OF SUNK COSTS IN THE DECISION TO INVEST IN R&D
2009
We present a dynamic empirical model of a firm's R&D decisions that is consistent with the existence of sunk R&D costs, taking into account that these costs may differ between small and large firms, and among different technological regimes. We estimate a multivariate dynamic discrete choice model using firm-level data of Spanish manufacturing for 1990–2000. Conditional on firm heterogeneity and serially correlated unobservable factors, we find that R&D history matters. This true state dependence allows inferring the existence of sunk R&D costs associated with performing R&D. Sunk R&D costs are found to be higher for large, high-tech firms.
Innovation for climate change adaptation and technical efficiency: an empirical analysis in the European agricultural sector
2020
This paper analyses the effect of innovation on firms' technical efficiency. Using climate-related patent data to proxy for innovation activity in different technological fields, the paper employs a stochastic frontier approach to estimate the impact of innovative efforts on agricultural firms' technical efficiency taking account of both unobservable heterogeneity and double heteroscedasticity in the inefficiency and idiosyncratic terms. Our findings confirm that innovation has a positive impact on firms' productivity (technical efficiency). While agricultural firms located in Germany and Sweden are more efficient compared to those in southern countries, all the European countries considere…
On the distribution of education and democracy
2006
This paper empirically analyzes the influence of the distribution of education on democracy by controlling for unobservable heterogeneity and by taking into account the persistency of some of the variables. The most novel finding is that increase in the education attained by the majority of the population is what matters for the implementation and sustainability of democracy, rather than the average years of schooling. We show this result is robust to issues pertaining omitted variables, outliers, sample selection, or a narrow definition of the variables used to measure democracy.
Comments on “Unobservable Selection and Coefficient Stability
2019
Abstract–: We establish a link between the approaches proposed by Oster (2019) and Pei, Pischke, and Schwandt (2019) which contribute to the development of inferential procedures for causal effects in the challenging and empirically relevant situation where the unknown data-generation process is not included in the set of models considered by the investigator. We use the general misspecification framework recently proposed by De Luca, Magnus, and Peracchi (2018) to analyze and understand the implications of the restrictions imposed by the two approaches.
Latent class models for multiple ordered categorical health data: testing violation of the local independence assumption
2019
Latent class models are now widely applied in health economics to analyse heterogeneity in multiple outcomes generated by subgroups of individuals who vary in unobservable characteristics, such as genetic information or latent traits. These models rely on the underlying assumption that associations between observed outcomes are due to their relationship to underlying subgroups, captured in these models by conditioning on a set of latent classes. This implies that outcomes are locally independent within a class. Local independence assumption, however, is sometimes violated in practical applications when there is uncaptured unobserved heterogeneity resulting in residual associations between c…
Toeholds and takeover probability: implications for investment strategies
2009
PurposeThe purpose of this paper is to propose various toehold indicators and analyse whether the models incorporating these indicators can be used to establish investment strategies.Design/methodology/approachLogistic regression is used to test toehold indicator significance.FindingsThe results reflect that the designed measures are positively correlated to the likelihood of launching a takeover, although the power of the models to predict out‐sample takeovers is moderate, between 60.71 percent and 71.59 percent. The indicators allow us to design strategies which offer positive abnormal returns. In particular, abnormal return over the Fama‐French factors is 0.5 percent.Originality/valueToe…