DEVELOPMENT OF A CROSS-SECTIONALLY CONSTRAINED RANDOM COEFFICIENT MODEL, WITH AN APPLICATION TO THE ESTIMATION OF THE VINTAGE EFFECT ON EARNINGS PROFILES
Abstract
This research extends the random coefficient model in a seemingly unrelated regressions framework, developed originally by Singh and Ullah. The model imposes constraints on the mean response coefficients for various homogeneous groups of individuals of different cross sections and develops estimation procedures under various error structures. Statistical tests for relationships of coefficients between groups are also derived. The model is applied to the estimation of the effect on an individual's vintage in his earnings over his lifetime, using panel data for Ph.D. scientists. A hypothesis test is performed which verifies that the vintage effect exists.
Degree
Ph.D.
Subject Area
Economic theory
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