Daniel Slottje - Academia.edu (original) (raw)

Papers by Daniel Slottje

Research paper thumbnail of An Alternative Approach to Estimating Demand: Neural Network Regression with Conditional Volatility for High Frequency Air Passenger Arrivals

In this paper we provide an alternative approach to analyze the demand for international tourism ... more In this paper we provide an alternative approach to analyze the demand for international tourism in the Balearic Islands, Spain, by using a neural network model that incorporates time-varying conditional volatility. We consider daily air passenger arrivals to Palma de Mallorca, Ibiza and Mahon, which are located in the islands of Mallorca, Ibiza and Menorca, respectively, as a proxy for international tourism demand for the Balearic Islands. Spain is a world leader in terms of total international tourist arrivals and receipts, and Mallorca is one of the most popular destinations in Spain. For tourism management and marketing, it is essential to forecast high frequency international tourist demand accurately. As it is important to provide sensible international tourism demand forecast intervals, it is also necessary to model their variances accurately. Moreover, time-varying variances provide useful information regarding the risks associated with variations in international tourist arrivals.

Research paper thumbnail of A Neural Network Demand System with Heteroskedastic Errors

In this paper we consider estimation of demand systems with flexible functional forms, allowing a... more In this paper we consider estimation of demand systems with flexible functional forms, allowing an error term with a general conditional heteroskedasticity function that depends on observed covariates, such as demographic variables. We propose a general model that can be either estimated by quasi-maximum likelihood (in the case of exogenous regressors) or generalized method of moments (GMM) if the covariates are endogenous. The specification proposed in the paper nests several demand functions proposed in the literature and the results in the paper can be applied to the recently proposed Exact Affine Stone Index (EASI) demand system. Furthermore, flexible nonlinear Engel curves can be estimated.

Research paper thumbnail of A Macroeconometric Model of Income Inequality in the United States

Contributions to Economic Analysis, 1994

Research paper thumbnail of Ranking economic liberty across countries

Public Choice, 1991

... 131 tive ranking of economic liberty between countries. ... We extend this argument to econom... more ... 131 tive ranking of economic liberty between countries. ... We extend this argument to economic liberty by suggesting that it is relative rank-ings between countries given a set of liberty indicators, that have the richest in-formation content in comparing liberty between countries. ...

Research paper thumbnail of A measure of income inequality in the U.S. for the years 1952–1980 based on the beta distribution of the second kind

Research paper thumbnail of Economic Damages in Intellectual Property: A Hands-On Guide to Litigation

eu.wiley.com

Determining the worth of intellectual property (IP) is a complicated task. An IP litigator needs ... more Determining the worth of intellectual property (IP) is a complicated task. An IP litigator needs to conclude the monetary damage occurring as a result of harm done to an inventor's or a company's reputation as well as the economic damage caused by compromise of an idea or invention due to its unauthorized usage.

Research paper thumbnail of The Reparameterization of Linear Models Subject to Exact Linear Restrictions

The estimation of regression models subject to exact linear restrictions, is a widely applied tec... more The estimation of regression models subject to exact linear restrictions, is a widely applied technique, however, aside from simple examples, the reparameterization method is rarely employed except in the case of polynomial lags. We believe this is due to the lack of a general transformation method for changing from the definition of restrictions in terms of the unrestricted parameters to the equivalent reparameterized model. In many cases the reparameterization method is computationally more efficient especially when estimation involves an iterative method. The general relationship that converts the two forms of the restricted model is derived. Examples involving systems of demand equations, polynomial lagged equations, and Splines are given in which the transformation from one form to the other are demonstrated. In addition, we demonstrate how a Wald test of the restrictions can be constructed using an augmented version of the reparameterized model. A computer program example is presented to demonstrate the equivalence. 1 We wish to acknowledge our colleagues Thomas B. Fomby and Jenny Lye for their helpful suggestions and comments on this paper, the usual caveat holds.

Research paper thumbnail of Measuring trends in U. S. income inequality. Theory and applications

Research paper thumbnail of A study of the relationship between economic growth and inequality: the case of Mexico

Research paper thumbnail of The effect of relative price changes and cost of living adjustments on some welfare indices

Research paper thumbnail of Antitrust Issues in International Comparisons of Market Structure1

The analysis and definition of markets, their structure, and concentration, especially for intern... more The analysis and definition of markets, their structure, and concentration, especially for international comparisons, are complicated by a lack of adequate and comparable data.

Research paper thumbnail of A Cluster Analysis of the Quality of Life in the United States over Time

Research paper thumbnail of Budget Constraint Prices as Preference Changing Parameters of Generalized Fechner-Thurstone Direct Utility Functions

American Economic Review

Page 1. Budget Constraint Prices as Preference Changing Parameters of Generalized Fechner-Thursto... more Page 1. Budget Constraint Prices as Preference Changing Parameters of Generalized Fechner-Thurstone Direct Utility Functions By RL BASMANN, DJ MOLINA, AND DJ SLOTTJE* Let V(X) be any direct utility function characterizing ...

Research paper thumbnail of Measuring Market Power in the Steel Industry

This paper describes a mode of economic analysis one can use to measure market power in the conte... more This paper describes a mode of economic analysis one can use to measure market power in the context of antitrust litigation in the steel plate industry. We describe our framework of analysis, our method of defining the relevant market and the indicia we examine to evaluate the degree of market power exercised by the Defendant in this market.

Research paper thumbnail of Confidence Intervals for Estimates of Elasticities

This chapter presents the econometric methods that are used in health economics to model individu... more This chapter presents the econometric methods that are used in health economics to model individuals health care costs. These methods are used for prediction, projection and forecasting, in the context of risk adjustment, resource allocation, technology assessment and policy evaluation. The chapter reviews the literature on the comparative performance of the methods, especially in the context of forecasting individual health care costs, and concludes with an empirical case study.

Research paper thumbnail of Employee Benefits and the Distribution of Income and Wealth

Research paper thumbnail of A new measure of innovation: The patent success ratio

Scientometrics, 2005

This paper introduces a simple new measure of innovation, the patent success ratio (PSR), namely ... more This paper introduces a simple new measure of innovation, the patent success ratio (PSR), namely the ratio of successful patent applications to total patent applications. It has been argued in the extensive literature on innovation and technology policy that patents can serve as an accurate proxy for innovative activity. This paper suggests that PSR is a more accurate measure of how innovative activity changes over time than are transformations of total patent applications and successful patent applications separately. A sensitivity analysis is conducted to assess the usefulness of the new PSR measure of innovation using annual US data for the period 1915-2001.

Research paper thumbnail of Antitrust environment and innovation

Scientometrics, 2005

This paper examines the relationship between the antitrust environment and innovation in the US e... more This paper examines the relationship between the antitrust environment and innovation in the US economy, where innovation is measured by patent activity. The hypothesis to be tested is whether antitrust enforcement activity, as measured by the number of civil filings of the US Department of Justice, has had a significant impact on the level of innovation in the US economy, after adjusting for other factors that have an impact on innovation, such as research and development expenditures and real economic growth. Impacts of civil antitrust case filings, criminal antitrust case filings and total US Department of Justice antitrust case filings on patent activity in the USA are estimated for the period 1953-2000. The empirical results show that civil case filings have a statistically significant impact on innovation. JEL Classification: D24; L23; K1

Research paper thumbnail of Chapter 14 The Use of Restricted Regressions in Estimating Demand Systems

Contributions to Economic Analysis, 2009

ABSTRACT The estimation of regression models subject to linear restrictions is a widely applied t... more ABSTRACT The estimation of regression models subject to linear restrictions is a widely applied technique; however, aside from simple examples, the equivalence between the linear restricted case to the reparameterization and the substitution case is rarely employed. We believe this is due to the lack of a general transformation method for changing from the definition of restrictions in terms of the unrestricted parameters to the equivalent reparameterized model and conversely from the reparameterized model to the equivalent linear restrictions for the unrestricted model. In many cases, the reparameterization method is computationally more efficient especially when estimation involves an iterative method. But the linear restriction case allows a simple method for adding and removal of restrictions.In this chapter, we derive a general relationship that allows the conversion between the two forms of the restricted models. Examples emphasizing systems of demand equations, polynomial lagged equations, and splines are given in which the transformation from one form to the other are demonstrated as well as the combination of both forms of restrictions. In addition, we demonstrate how an alternative Wald test of the restrictions can be constructed using an augmented version of the reparameterized model.

Research paper thumbnail of Bounding Estimates of Wage Discrimination

Research in Labor Economics, 2004

The Blinder Oaxaca decomposition method for defining wage differentials (generally referred to as... more The Blinder Oaxaca decomposition method for defining wage differentials (generally referred to as discrimination) from the wage equations of two groups has had a wide degree of application. However, the decomposition measures can vary dramatically depending on the definition of the non-discriminatory wage chosen for comparison. This paper uses a form of extreme bounds analysis to define the limits on the measure of discrimination that can be obtained from these decompositions. A simple application is presented to demonstrate the use of the bootstrap to define the distributions of the discrimination measure.

Research paper thumbnail of An Alternative Approach to Estimating Demand: Neural Network Regression with Conditional Volatility for High Frequency Air Passenger Arrivals

In this paper we provide an alternative approach to analyze the demand for international tourism ... more In this paper we provide an alternative approach to analyze the demand for international tourism in the Balearic Islands, Spain, by using a neural network model that incorporates time-varying conditional volatility. We consider daily air passenger arrivals to Palma de Mallorca, Ibiza and Mahon, which are located in the islands of Mallorca, Ibiza and Menorca, respectively, as a proxy for international tourism demand for the Balearic Islands. Spain is a world leader in terms of total international tourist arrivals and receipts, and Mallorca is one of the most popular destinations in Spain. For tourism management and marketing, it is essential to forecast high frequency international tourist demand accurately. As it is important to provide sensible international tourism demand forecast intervals, it is also necessary to model their variances accurately. Moreover, time-varying variances provide useful information regarding the risks associated with variations in international tourist arrivals.

Research paper thumbnail of A Neural Network Demand System with Heteroskedastic Errors

In this paper we consider estimation of demand systems with flexible functional forms, allowing a... more In this paper we consider estimation of demand systems with flexible functional forms, allowing an error term with a general conditional heteroskedasticity function that depends on observed covariates, such as demographic variables. We propose a general model that can be either estimated by quasi-maximum likelihood (in the case of exogenous regressors) or generalized method of moments (GMM) if the covariates are endogenous. The specification proposed in the paper nests several demand functions proposed in the literature and the results in the paper can be applied to the recently proposed Exact Affine Stone Index (EASI) demand system. Furthermore, flexible nonlinear Engel curves can be estimated.

Research paper thumbnail of A Macroeconometric Model of Income Inequality in the United States

Contributions to Economic Analysis, 1994

Research paper thumbnail of Ranking economic liberty across countries

Public Choice, 1991

... 131 tive ranking of economic liberty between countries. ... We extend this argument to econom... more ... 131 tive ranking of economic liberty between countries. ... We extend this argument to economic liberty by suggesting that it is relative rank-ings between countries given a set of liberty indicators, that have the richest in-formation content in comparing liberty between countries. ...

Research paper thumbnail of A measure of income inequality in the U.S. for the years 1952–1980 based on the beta distribution of the second kind

Research paper thumbnail of Economic Damages in Intellectual Property: A Hands-On Guide to Litigation

eu.wiley.com

Determining the worth of intellectual property (IP) is a complicated task. An IP litigator needs ... more Determining the worth of intellectual property (IP) is a complicated task. An IP litigator needs to conclude the monetary damage occurring as a result of harm done to an inventor's or a company's reputation as well as the economic damage caused by compromise of an idea or invention due to its unauthorized usage.

Research paper thumbnail of The Reparameterization of Linear Models Subject to Exact Linear Restrictions

The estimation of regression models subject to exact linear restrictions, is a widely applied tec... more The estimation of regression models subject to exact linear restrictions, is a widely applied technique, however, aside from simple examples, the reparameterization method is rarely employed except in the case of polynomial lags. We believe this is due to the lack of a general transformation method for changing from the definition of restrictions in terms of the unrestricted parameters to the equivalent reparameterized model. In many cases the reparameterization method is computationally more efficient especially when estimation involves an iterative method. The general relationship that converts the two forms of the restricted model is derived. Examples involving systems of demand equations, polynomial lagged equations, and Splines are given in which the transformation from one form to the other are demonstrated. In addition, we demonstrate how a Wald test of the restrictions can be constructed using an augmented version of the reparameterized model. A computer program example is presented to demonstrate the equivalence. 1 We wish to acknowledge our colleagues Thomas B. Fomby and Jenny Lye for their helpful suggestions and comments on this paper, the usual caveat holds.

Research paper thumbnail of Measuring trends in U. S. income inequality. Theory and applications

Research paper thumbnail of A study of the relationship between economic growth and inequality: the case of Mexico

Research paper thumbnail of The effect of relative price changes and cost of living adjustments on some welfare indices

Research paper thumbnail of Antitrust Issues in International Comparisons of Market Structure1

The analysis and definition of markets, their structure, and concentration, especially for intern... more The analysis and definition of markets, their structure, and concentration, especially for international comparisons, are complicated by a lack of adequate and comparable data.

Research paper thumbnail of A Cluster Analysis of the Quality of Life in the United States over Time

Research paper thumbnail of Budget Constraint Prices as Preference Changing Parameters of Generalized Fechner-Thurstone Direct Utility Functions

American Economic Review

Page 1. Budget Constraint Prices as Preference Changing Parameters of Generalized Fechner-Thursto... more Page 1. Budget Constraint Prices as Preference Changing Parameters of Generalized Fechner-Thurstone Direct Utility Functions By RL BASMANN, DJ MOLINA, AND DJ SLOTTJE* Let V(X) be any direct utility function characterizing ...

Research paper thumbnail of Measuring Market Power in the Steel Industry

This paper describes a mode of economic analysis one can use to measure market power in the conte... more This paper describes a mode of economic analysis one can use to measure market power in the context of antitrust litigation in the steel plate industry. We describe our framework of analysis, our method of defining the relevant market and the indicia we examine to evaluate the degree of market power exercised by the Defendant in this market.

Research paper thumbnail of Confidence Intervals for Estimates of Elasticities

This chapter presents the econometric methods that are used in health economics to model individu... more This chapter presents the econometric methods that are used in health economics to model individuals health care costs. These methods are used for prediction, projection and forecasting, in the context of risk adjustment, resource allocation, technology assessment and policy evaluation. The chapter reviews the literature on the comparative performance of the methods, especially in the context of forecasting individual health care costs, and concludes with an empirical case study.

Research paper thumbnail of Employee Benefits and the Distribution of Income and Wealth

Research paper thumbnail of A new measure of innovation: The patent success ratio

Scientometrics, 2005

This paper introduces a simple new measure of innovation, the patent success ratio (PSR), namely ... more This paper introduces a simple new measure of innovation, the patent success ratio (PSR), namely the ratio of successful patent applications to total patent applications. It has been argued in the extensive literature on innovation and technology policy that patents can serve as an accurate proxy for innovative activity. This paper suggests that PSR is a more accurate measure of how innovative activity changes over time than are transformations of total patent applications and successful patent applications separately. A sensitivity analysis is conducted to assess the usefulness of the new PSR measure of innovation using annual US data for the period 1915-2001.

Research paper thumbnail of Antitrust environment and innovation

Scientometrics, 2005

This paper examines the relationship between the antitrust environment and innovation in the US e... more This paper examines the relationship between the antitrust environment and innovation in the US economy, where innovation is measured by patent activity. The hypothesis to be tested is whether antitrust enforcement activity, as measured by the number of civil filings of the US Department of Justice, has had a significant impact on the level of innovation in the US economy, after adjusting for other factors that have an impact on innovation, such as research and development expenditures and real economic growth. Impacts of civil antitrust case filings, criminal antitrust case filings and total US Department of Justice antitrust case filings on patent activity in the USA are estimated for the period 1953-2000. The empirical results show that civil case filings have a statistically significant impact on innovation. JEL Classification: D24; L23; K1

Research paper thumbnail of Chapter 14 The Use of Restricted Regressions in Estimating Demand Systems

Contributions to Economic Analysis, 2009

ABSTRACT The estimation of regression models subject to linear restrictions is a widely applied t... more ABSTRACT The estimation of regression models subject to linear restrictions is a widely applied technique; however, aside from simple examples, the equivalence between the linear restricted case to the reparameterization and the substitution case is rarely employed. We believe this is due to the lack of a general transformation method for changing from the definition of restrictions in terms of the unrestricted parameters to the equivalent reparameterized model and conversely from the reparameterized model to the equivalent linear restrictions for the unrestricted model. In many cases, the reparameterization method is computationally more efficient especially when estimation involves an iterative method. But the linear restriction case allows a simple method for adding and removal of restrictions.In this chapter, we derive a general relationship that allows the conversion between the two forms of the restricted models. Examples emphasizing systems of demand equations, polynomial lagged equations, and splines are given in which the transformation from one form to the other are demonstrated as well as the combination of both forms of restrictions. In addition, we demonstrate how an alternative Wald test of the restrictions can be constructed using an augmented version of the reparameterized model.

Research paper thumbnail of Bounding Estimates of Wage Discrimination

Research in Labor Economics, 2004

The Blinder Oaxaca decomposition method for defining wage differentials (generally referred to as... more The Blinder Oaxaca decomposition method for defining wage differentials (generally referred to as discrimination) from the wage equations of two groups has had a wide degree of application. However, the decomposition measures can vary dramatically depending on the definition of the non-discriminatory wage chosen for comparison. This paper uses a form of extreme bounds analysis to define the limits on the measure of discrimination that can be obtained from these decompositions. A simple application is presented to demonstrate the use of the bootstrap to define the distributions of the discrimination measure.