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On The Empirical Content Of Quantal Response Equilibrium, Philip A. Haile, Ali Hortaçsu, Grigory Kosenok Sep 2003

On The Empirical Content Of Quantal Response Equilibrium, Philip A. Haile, Ali Hortaçsu, Grigory Kosenok

Cowles Foundation Discussion Papers

The quantal response equilibrium (QRE) notion of McKelvey and Palfrey (1995) has recently attracted considerable attention, due largely to its widely documented ability to rationalize observed behavior in games played by experimental subjects. We show that this ability to fit the data, as typically measured in this literature, is uninformative. Without a priori distributional assumptions, a QRE can match any distribution of behavior by each player in any normal form game. We discuss approaches that might be taken to provide valid empirical evaluation of the QRE and discuss its potential value as an approximating empirical structure.


Bias In Dynamic Panel Estimation With Fixed Effects, Incidental Trends And Cross Section Dependence, Peter C.B. Phillips, Donggyu Sul Sep 2003

Bias In Dynamic Panel Estimation With Fixed Effects, Incidental Trends And Cross Section Dependence, Peter C.B. Phillips, Donggyu Sul

Cowles Foundation Discussion Papers

Explicit asymptotic bias formulae are given for dynamic panel regression estimators as the cross section sample size N → ∞. The results extend earlier work by Nickell (1981) and later authors in several directions that are relevant for practical work, including models with unit roots, deterministic trends, predetermined and exogenous regressors, and errors that may be cross sectionally dependent. The asymptotic bias is found to be so large when incidental linear trends are fitted and the time series sample size is small that it changes the sign of the autoregressive coefficient. Another finding of interest is that, when there is …


The Great Depression As A Credit Boom Gone Wrong, Barry Eichengreen, Kris Mitchener Sep 2003

The Great Depression As A Credit Boom Gone Wrong, Barry Eichengreen, Kris Mitchener

Documents

No abstract provided.


Allen Fishbein - Testimony Before The Committee On Financial Services, U.S. House Of Representatives, Allen J. Fishbein Sep 2003

Allen Fishbein - Testimony Before The Committee On Financial Services, U.S. House Of Representatives, Allen J. Fishbein

Documents

No abstract provided.


Japan: Financial System Stability Assessment And Supplementary Information, International Monetary Fund (Imf) Sep 2003

Japan: Financial System Stability Assessment And Supplementary Information, International Monetary Fund (Imf)

Documents

No abstract provided.


Managing Systemic Banking Crises, Marc Quintyn, David Hoelscher Aug 2003

Managing Systemic Banking Crises, Marc Quintyn, David Hoelscher

Documents

No abstract provided.


On The Empirical Content Of Quantal Response Equilibrium, Philip A. Haile, Ali Hortaçsu, Grigory Kosenok Aug 2003

On The Empirical Content Of Quantal Response Equilibrium, Philip A. Haile, Ali Hortaçsu, Grigory Kosenok

Cowles Foundation Discussion Papers

The quantal response equilibrium (QRE) notion of McKelvey and Palfrey (1995) has recently attracted considerable attention, due in part to its widely documented ability to rationalize observed behavior in games played by experimental subjects. However, even with strong a priori restrictions on unobservables, QRE imposes no falsifiable restrictions: it can rationalize any distribution of behavior in any normal form game. After demonstrating this, we discuss several approaches to testing QRE under additional maintained assumptions.


Frbny Letter From Frank P Sabato To Michelle Sims Re Report Conducted By Examinere For The Federal Reserve Bank Of New York, Homer Hill Iii, Frank P. Sabato Jul 2003

Frbny Letter From Frank P Sabato To Michelle Sims Re Report Conducted By Examinere For The Federal Reserve Bank Of New York, Homer Hill Iii, Frank P. Sabato

Documents

No abstract provided.


Testimony Of Dr. Susan M. Wachter Before The Subcommittee Of Capital Markets, Insurance, And Government Sponsored Enterprises, Dr. Susan M. Wachter Jul 2003

Testimony Of Dr. Susan M. Wachter Before The Subcommittee Of Capital Markets, Insurance, And Government Sponsored Enterprises, Dr. Susan M. Wachter

Documents

No abstract provided.


Estimating Equilibrium Models Of Sorting Across Locations, Patrick Bayer, Christopher Timmins Jul 2003

Estimating Equilibrium Models Of Sorting Across Locations, Patrick Bayer, Christopher Timmins

Discussion Papers

No abstract provided.


The Effectiveness Of Juvenile Correctional Facilities: Public Versus Private Management, Patrick Bayer, David E. Pozen Jul 2003

The Effectiveness Of Juvenile Correctional Facilities: Public Versus Private Management, Patrick Bayer, David E. Pozen

Discussion Papers

No abstract provided.


An Equilibrium Model Of Sorting In An Urban Housing Market: The Causes And Consequences Of Residential Segregation, Patrick Bayer, Robert Mcmillan, Kim Rueben Jul 2003

An Equilibrium Model Of Sorting In An Urban Housing Market: The Causes And Consequences Of Residential Segregation, Patrick Bayer, Robert Mcmillan, Kim Rueben

Discussion Papers

No abstract provided.


Privatizing Highways In Latin America: Is It Possible To Fix What Went Wrong?, Eduardo Engel, Ronald Fischer, Alexander Galetovic Jul 2003

Privatizing Highways In Latin America: Is It Possible To Fix What Went Wrong?, Eduardo Engel, Ronald Fischer, Alexander Galetovic

Discussion Papers

No abstract provided.


Adjustment Is Much Slower Than You Think, Ricardo J. Caballero, Eduardo M.R.A. Engel Jul 2003

Adjustment Is Much Slower Than You Think, Ricardo J. Caballero, Eduardo M.R.A. Engel

Discussion Papers

No abstract provided.


Fertility, Child Work And Schooling Consequences Of Family Planning Programs: Evidence From An Experiment In Rural Bangladesh, Nistha Sinha Jul 2003

Fertility, Child Work And Schooling Consequences Of Family Planning Programs: Evidence From An Experiment In Rural Bangladesh, Nistha Sinha

Discussion Papers

No abstract provided.


Building Criminal Capital Behind Bars: Social Learning In Juvenile Corrections, Patrick Bayer, Randi Pintoff, David E. Pozen Jul 2003

Building Criminal Capital Behind Bars: Social Learning In Juvenile Corrections, Patrick Bayer, Randi Pintoff, David E. Pozen

Discussion Papers

No abstract provided.


Missing Aggregate Dynamics: On The Slow Convergence Of Lumpy Adjustment Models, Ricardo J. Caballero, Eduardo Engel Jul 2003

Missing Aggregate Dynamics: On The Slow Convergence Of Lumpy Adjustment Models, Ricardo J. Caballero, Eduardo Engel

Cowles Foundation Discussion Papers

The dynamic response of aggregate variables to shocks is one of the central concerns of applied macroeconomics. The main measurement procedure for these dynamics consists of estimating an ARMA or VAR (VARs, for short). In non- or semi-structural approaches, the characterization of dynamics stops there. In other, more structural approaches, researcher try to uncover underlying adjustment cost parameters from the estimated VARs. Yet, in others, such as in RBC models, these estimates are used as the benchmark over which the success of the calibration exercise, and the need for further theorizing, is assessed. The main point of this paper is …


Argentina: 2002 Article Iv Consultation-Staff Report, International Monetary Fund (Imf) Jul 2003

Argentina: 2002 Article Iv Consultation-Staff Report, International Monetary Fund (Imf)

Documents

No abstract provided.


Implementation Completion Report On A Loan In The Amount Of Us$75 Million To Jamaica For A Second Bank Restructuring & Debt Management Program Adjustment Loan, World Bank/World Bank Group Jun 2003

Implementation Completion Report On A Loan In The Amount Of Us$75 Million To Jamaica For A Second Bank Restructuring & Debt Management Program Adjustment Loan, World Bank/World Bank Group

Documents

Second World Bank loan evaluation and last detailed update on FINSAC debt recovery progress


A Modern History Of Fomc Communication: 1975-2002, David E. Lindsey Jun 2003

A Modern History Of Fomc Communication: 1975-2002, David E. Lindsey

Documents

David E. Lindsey, Deputy Director of Monetary Affairs and Associate Economist, Federal Open Market Committee


Financial And Corporate Restructuring In South Korea, Hiroshi Akama, Kunihisa Noro, Hiroko Tada Jun 2003

Financial And Corporate Restructuring In South Korea, Hiroshi Akama, Kunihisa Noro, Hiroko Tada

Documents

No abstract provided.


Child Labor, Christopher Udry Jun 2003

Child Labor, Christopher Udry

Discussion Papers

No abstract provided.


Positive And Negative Modulatory Roles Of Platelet Endothelial Cell Adhesion Molecule-1 Signaling In Endothelial Cell Migration: Coordination Of Rho Signaling And Targeting Of Shp-2 Tyrosine Phosphatase Activity, Dita Gratzinger May 2003

Positive And Negative Modulatory Roles Of Platelet Endothelial Cell Adhesion Molecule-1 Signaling In Endothelial Cell Migration: Coordination Of Rho Signaling And Targeting Of Shp-2 Tyrosine Phosphatase Activity, Dita Gratzinger

Yale Medicine Thesis Digital Library

Platelet Endothelial Cell Adhesion Molecule-1 (PECAM-1), an immunoglobulin family adhesion molecule, is involved in endothelial migration and angiogenesis. We found that PECAM-1 deficient endothelial cells exhibit enhanced nondirected single cell motility and extension formation at the expense of wound-healing migration. These in vitro endothelial behaviors model aspects of highly developmentally and pathophysiologically relevant processes. Wound healing migration may model the reendothelialization of denuded vasculature following balloon angioplasty or the remodeling of vascular endothelium under variant flow conditions, while single cell motility is prominently involved in developmental processes such as endocardial-mesenchymal transition within the cardiac cushion. A specific deficiency of RhoGTP …


Alternative Approximations Of The Bias And Mse Of The Iv Estimator Under Weak Identification With An Application To Bias Correction, John C. Chao, Norman R. Swanson May 2003

Alternative Approximations Of The Bias And Mse Of The Iv Estimator Under Weak Identification With An Application To Bias Correction, John C. Chao, Norman R. Swanson

Cowles Foundation Discussion Papers

We provide analytical formulae for the asymptotic bias (ABIAS) and mean squared error (AMSE) of the IV estimator, and obtain approximations thereof based on an asymptotic scheme which essentially requires the expectation of the first stage F -statistic to converge to a finite (possibly small) positive limit as the number of instruments approaches infinity. The approximations so obtained are shown, via regression analysis, to yield good approximations for ABIAS and AMSE functions, and the AMSE approximation is shown to perform well relative to the approximation of Donald and Newey (2001). Additionally, the manner in which our framework generalizes that of …


Strategic Freedom, Constraint And Symmetry In One-Period Markets With Cash And Credit Payment, Martin Shubik, Eric Smith May 2003

Strategic Freedom, Constraint And Symmetry In One-Period Markets With Cash And Credit Payment, Martin Shubik, Eric Smith

Cowles Foundation Discussion Papers

In order to explain in a systematic way why certain combinations of market, financial, and legal structures may be intrinsic to certain capabilities to exchange real goods, we introduce criteria for abstracting the qualitative functions of markets. The criteria involve the number of strategic freedoms the combined institutions, considered as formalized strategic games, present to traders, the constraints they impose, and the symmetry with which those constraints are applied to the traders. We pay particular attention to what is required to make these “strategic market games” well-defined, and to make various solutions computable by the agents within the bounds on …


Program Document For A Proposed Loan In The Amount Of Us$150 Million For A Programmatic Financial Sector Adjustment Operation To Colombia (25472-Co), World Bank/World Bank Group Apr 2003

Program Document For A Proposed Loan In The Amount Of Us$150 Million For A Programmatic Financial Sector Adjustment Operation To Colombia (25472-Co), World Bank/World Bank Group

Documents

No abstract provided.


Finding The Right Hospital 2002 Annual Report Yale-New Haven Hospital, Yale-New Haven Hospital Apr 2003

Finding The Right Hospital 2002 Annual Report Yale-New Haven Hospital, Yale-New Haven Hospital

Yale New Haven Hospital Annual Reports

For the year 2002. Year ending September 30, 2002.


Human Resources In China: The Birth Quota, Returns To Schooling, And Migration, T. Paul Schultz Apr 2003

Human Resources In China: The Birth Quota, Returns To Schooling, And Migration, T. Paul Schultz

Discussion Papers

No abstract provided.


Human Capital, Schooling And Health Returns, T. Paul Schultz Apr 2003

Human Capital, Schooling And Health Returns, T. Paul Schultz

Discussion Papers

No abstract provided.


Market Bubbles And Wasteful Avoidance: Tax And Regulatory Constraints On Short Sales, Michael R. Powers, David M. Schizer, Martin Shubik Apr 2003

Market Bubbles And Wasteful Avoidance: Tax And Regulatory Constraints On Short Sales, Michael R. Powers, David M. Schizer, Martin Shubik

Cowles Foundation Discussion Papers

Although short sales make an important contribution to financial markets, this transaction faces legal constraints that do not govern long positions. In evaluating these constraints, other commentators, who are virtually all economists, have not focused rigorously enough on the precise contours of current law. Some short sale constraints are mischaracterized, while others are omitted entirely. Likewise, the existing literature neglects many strategies in which well advised investors circumvent these constraints; this avoidance may reduce the impact of short sale constraints on market prices, but may contribute to social waste in other ways. To fill these gaps in the literature, this …