scholarly journals Liquid Assets? the Short-Run Liabilities of Binge Drinking

2019 ◽  
Vol 129 (621) ◽  
pp. 2090-2136 ◽  
Author(s):  
Marco Francesconi ◽  
Jonathan James
Keyword(s):  
Binge Drinking ◽  
Instrumental Variables ◽  
Drunk Driving ◽  
Estimation Procedure ◽  
Road Accidents ◽  
Single Session ◽  
Instrumental Variables Estimation ◽  
Accident And Emergency ◽  
Short Run ◽  
Binge Drinker

Abstract We estimate the effect of binge drinking on road accidents, accident and emergency (A&E) attendances and arrests using a variety of unique English data and a two-sample instrumental variables estimation procedure. Drinking $10+$ units of alcohol in a single session increases road accidents by 18.6%, injury-related A&E attendances by 6.6% and arrests by 71%. The marginal increase from eight to $10+$ alcoholic units implies nearly 6,100 extra road accidents every year, 63,000 additional A&E attendances and 100,000 additional arrests. The externality per mile driven by a binge drinker is about five pence and the punishment that internalises this externality is equivalent to a fine of £22,800 per drunk driving arrest.

scholarly journals ELASTICITY OF SUBSTITUTION AND TECHNICAL PROGRESS: IS THERE A MISSPECIFICATION PROBLEM?

2016 ◽  
Vol 22 (1) ◽  
pp. 101-121 ◽  
Author(s):  
Daniela Federici ◽  
Enrico Saltari
Keyword(s):  
Estimation Procedure ◽  
Elasticity Of Substitution ◽  
Technological Parameters ◽  
Italian Economy ◽  
Spurious Regression ◽  
Long Run ◽  
Correlation Problem ◽  
Short Run ◽  
Modeling Strategy ◽  
Two Parameters

In previous work, we estimated a dynamic model of the Italian economy, showing that its weakness in the past two decades is mainly due to the slowdown in total factor productivity growth. In those models, two parameters play a key role: technological progress and the elasticity of substitution. Recent estimates of those parameters are affected, in our opinion, by a specification problem: technological parameters are inherently long-run but their estimates are based on short-run data. Looking deeply into the estimation procedure, we show that the misspecification issue present in the estimates gives rise to a spurious regression bias (high R2, low DW), because the standard approach does not incorporate frictions and rigidities. Our modeling strategy takes account of them. Although we cannot in general say that our framework gets rid of the serial correlation problem, the statistics for our model do show that residuals are not serially correlated.

Instrumental variables estimation under a structural Cox model

Biostatistics ◽  
2017 ◽  
Vol 20 (1) ◽  
pp. 65-79 ◽  
Author(s):  
Torben Martinussen ◽  
Ditte Nørbo Sørensen ◽  
Stijn Vansteelandt
Keyword(s):  
Instrumental Variables ◽  
Cox Model ◽  
Instrumental Variables Estimation
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