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OLS Estimates (ol + estimate)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting85%
Distribution within Business, Economics, Finance and Accounting
General & Introductory Economics32%

Selected Abstracts

Do Firms Share their Success with Workers?

ECONOMICA, Issue 280 2003
The Response of Wages to Product Market Conditions
We provide new evidence that industry financial conditions help determine wages in the US manufacturing sector. Ordinary least squares estimates of the effect of rents per worker on wages are significantly positive, but quite small. We show that this may stem from econometric difficulties that plague the OLS estimates. Using the US input,output tables to isolate demand shocks, we overcome these issues and identify the effects of the industry financial situation on wages. Our IV estimates reveal substantial rent sharing,much more than is consistent with a purely competitive labour market. [source]

Estimating the price elasticity of expenditure for prescription drugs in the presence of non-linear price schedules: an illustration from Quebec, Canada

HEALTH ECONOMICS, Issue 9 2005
Paul Contoyannis
Abstract The price elasticity of demand for prescription drugs is a crucial parameter of interest in designing pharmaceutical benefit plans. Estimating the elasticity using micro-data, however, is challenging because insurance coverage that includes deductibles, co-insurance provisions and maximum expenditure limits create a non-linear price schedule, making price endogenous (a function of drug consumption). In this paper we exploit an exogenous change in cost-sharing within the Quebec (Canada) public Pharmacare program to estimate the price elasticity of expenditure for drugs using IV methods. This approach corrects for the endogeneity of price and incorporates the concept of a ,rational' consumer who factors into consumption decisions the price they expect to face at the margin given their expected needs. The IV method is adapted from an approach developed in the public finance literature used to estimate income responses to changes in tax schedules. The instrument is based on the price an individual would face under the new cost-sharing policy if their consumption remained at the pre-policy level. Our preferred specification leads to expenditure elasticities that are in the low range of previous estimates (between ,0.12 and ,0.16). Naïve OLS estimates are between 1 and 4 times these magnitudes. Copyright © 2005 John Wiley & Sons, Ltd. [source]

The Causal Effect of Election Delay on Union Win Rates: Instrumental Variable Estimates from Two Natural Experiments

INDUSTRIAL RELATIONS, Issue 3 2010
CHRIS RIDDELL
The role of election delay in union organizing campaigns has become a key policy issue in several countries. Previous studies have documented a negative correlation between delay and union success. However, elections are generally not randomly delayed; in particular, election delay is correlated with various "hard-to-observe" union and employer strategies. This article exploits several exogenous sources of variation in election delay to estimate a causal model. The results indicate that two-stage least squares estimates of the causal effect of election delay on union success are twice the magnitude of standard OLS estimates. [source]

Testing the capital asset pricing model efficiently under elliptical symmetry: a semiparametric approach

JOURNAL OF APPLIED ECONOMETRICS, Issue 6 2002
Douglas J. Hodgson
We develop new tests of the capital asset pricing model that take account of and are valid under the assumption that the distribution generating returns is elliptically symmetric; this assumption is necessary and sufficient for the validity of the CAPM. Our test is based on semiparametric efficient estimation procedures for a seemingly unrelated regression model where the multivariate error density is elliptically symmetric, but otherwise unrestricted. The elliptical symmetry assumption allows us to avoid the curse of dimensionality problem that typically arises in multivariate semiparametric estimation procedures, because the multivariate elliptically symmetric density function can be written as a function of a scalar transformation of the observed multivariate data. The elliptically symmetric family includes a number of thick-tailed distributions and so is potentially relevant in financial applications. Our estimated betas are lower than the OLS estimates, and our parameter estimates are much less consistent with the CAPM restrictions than the corresponding OLS estimates. Copyright © 2002 John Wiley & Sons, Ltd. [source]

The Wage Effects of Computer Use: Evidence from WERS 2004

BRITISH JOURNAL OF INDUSTRIAL RELATIONS, Issue 4 2008
Peter Dolton
Computers and ICT have changed the way we live and work. The latest Workplace Employment Relations Survey (WERS) 2004 provides a snapshot of how using ICT has revolutionized the workplace. Various studies have suggested that the use of a computer at work boosted earnings by as much as 20 per cent. Others suggest this reported impact is due to unobserved heterogeneity. Using excellent data from the WERS employer,employee matched sample, we compare ordinary least squares (OLS) estimates with those from alternative estimation methods and those which include controls for workplace and occupation interactions. We show that OLS estimates overstate the return to computer use but that including occupation and workplace controls, reduces the return to around 3 per cent. We explore the return on different IT skills and find a small return to the use of the ,office IT function' and the intensity of computer use as measured by the number of tasks a computer is used for. [source]

The Returns to Academic and Vocational Qualifications in Britain

BULLETIN OF ECONOMIC RESEARCH, Issue 3 2002
Lorraine Dearden
This paper uses data from the 1991 sweep of the National Child Development Study (NCDS) and the 1998 Labour Force Survey (LFS) to provide a comprehensive analysis of the labour market returns to academic and vocational qualifications. The results show that the wage premia from academic qualifications are typically higher than from vocational qualifications. However, this gap is reduced somewhat, when we control for the amount of time taken to acquire different qualifications. This is particularly important for vocational courses, which generally take shorter time periods to complete. In the paper we also investigate how returns vary by gender, subsequent qualifications, and the natural ability of individuals. Finally, by comparing the NCDS results with those from the LFS, we estimate the bias that can result from not controlling for factors such as ability, family background and measurement error. The results reveal that the estimated returns in the NCDS equations controlling for ability, family background and measurement error are similar to the simple OLS estimates obtained with the LFS, which do not control for these factors. This suggests that the biases generally offset one another. [source]