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The Cross-sectional Distribution of Completed Lifetimes: Some New Inferences from Survival Analysis

Author

Listed:
  • Tian, Maoshan

    (Cardiff Business School)

  • Dixon, Huw David

    (Cardiff Business School)

Abstract

The cross-sectional distribution of completed lifetimes (DCL) is a new estimator defined and derived by Dixon (2012) in the general Taylor price model (GTE). DCL can be known as the cross-sectional weighted estimator summing to 1. It is a new statistics applying to describe the data. This paper focuses on the cross-sectional distribution in the survival analysis. The delta method is applied to derive the variance of the of three cumulative distribution functions: the distribution of duration, cross-sectional distribution of age, distribution of duration across rms. The Monte Carlo experiment is applied to do the simulation study. The empirical results show that the asymptotic variance formula of the DCL and distribution of duration performs well when the sample size above 25. With the increasing of the sample size, the bias of the variance is reduced.

Suggested Citation

  • Tian, Maoshan & Dixon, Huw David, 2018. "The Cross-sectional Distribution of Completed Lifetimes: Some New Inferences from Survival Analysis," Cardiff Economics Working Papers E2018/27, Cardiff University, Cardiff Business School, Economics Section.
    • Handle: RePEc:cdf:wpaper:2018/27
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    References listed on IDEAS

    as
    1. Huw Dixon & Hervé Le Bihan, 2012. "Generalised Taylor and Generalised Calvo Price and Wage Setting: Micro‐evidence with Macro Implications," Economic Journal, Royal Economic Society, vol. 122(560), pages 532-554, May.
    2. repec:ecj:econjl:v:122:y:2012:i::p:532-554 is not listed on IDEAS
    3. Taylor, John B, 1980. "Aggregate Dynamics and Staggered Contracts," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 1-23, February.
    4. Eyal Baharad & Benjamin Eden, 2004. "Price Rigidity and Price Dispersion: Evidence from Micro Data," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(3), pages 613-641, July.
    5. Coenen, Günter & Mohr, Matthias & Straub, Roland, 2008. "Fiscal consolidation in the euro area: Long-run benefits and short-run costs," Economic Modelling, Elsevier, vol. 25(5), pages 912-932, September.
    6. Dixon Huw, 2012. "A Unified Framework for Using Micro-Data to Compare Dynamic Time-Dependent Price-Setting Models," The B.E. Journal of Macroeconomics, De Gruyter, vol. 12(1), pages 1-45, July.
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    More about this item

    Keywords

    Delta Method; Survival Analysis; Kaplan-Meier Estimator;
    All these keywords.

    JEL classification:

    • C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other
    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions

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