David Seim in the American Economic Journal
In a recent article in the American Economic Journal, economics researchers David Seim, Marco Stenborg Petterson, and Jesse M. Shapiro show how intuitions about unobserved shocks can generate informative bounds on parameters.
David Seim is a professor at Stockholm University, Marco Stenborg Petterson a research fellow at Napel University Federico II and Jesse M. Shapiro a professor at Harvard University.
Abstract
"We study the problem of learning about the effect of one market-level variable (e.g., price) on another (e.g., quantity) in the presence of shocks to unobservables (e.g., preferences). We show that economic intuitions about the plausible size of the shocks can be informative about the parameter of interest. We illustrate with a main application to the grain market."
"Bounds on a Slope from Size Restrictions on Economic Shocks", in American Economic Journal: Microeconomics, 3:2023.
Last updated: August 16, 2023
Source: Department of Economics