Monotonicity and the Roy Model
AbstractIn this note we study the implications on a bivariate normal Roy model of two sets of monotonicity hypotheses proposed recently by Manski and Pepper (Econometrica, Vol. 64 (2000), pp. 997-1011). In that simple context, we show that these hypotheses imply strong restrictions on the correlations structure between the decision and the rewards. Copyright Blackwell Publishing Ltd and The Victoria University of Manchester, 2004.
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Bibliographic InfoArticle provided by University of Manchester in its journal The Manchester School.
Volume (Year): 72 (2004)
Issue (Month): 4 (07)
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Other versions of this item:
- Arnaud Chevalier & Gauthier Lanot, 2002. "Monotonicity and the Roy Model," Labor and Demography, EconWPA 0211001, EconWPA.
- Arnaud Chevalier & Gauthier Lanot, 2002. "Monotonicity and the Roy Model," CEE Discussion Papers, Centre for the Economics of Education, LSE 0028, Centre for the Economics of Education, LSE.
- Arnaud Chevalier & Gauthier Lanot, 2002. "Monotonicity and the Roy model," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 19498, London School of Economics and Political Science, LSE Library.
- Arnaud Chevalier & Gauthier Lanot, 2002. "Monotonicity and the Roy Model," Keele Economics Research Papers, Centre for Economic Research, Keele University KERP 2002/06, Centre for Economic Research, Keele University.
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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