American Economic Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Bounds on a Slope from Size Restrictions on Economic Shocks
American Economic Journal: Microeconomics
vol. 15,
no. 3, August 2023
(pp. 552–72)
Abstract
We study the problem of learning about the effect of one market-level variable (e.g., price) on another (e.g., quantity) in the presence of shocks to unobservables (e.g., preferences). We show that economic intuitions about the plausible size of the shocks can be informative about the parameter of interest. We illustrate with a main application to the grain market.Citation
Petterson, Marco Stenborg, David Seim, and Jesse M. Shapiro. 2023. "Bounds on a Slope from Size Restrictions on Economic Shocks." American Economic Journal: Microeconomics, 15 (3): 552–72. DOI: 10.1257/mic.20210365Additional Materials
JEL Classification
- D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- E23 Macroeconomics: Production
- G13 Contingent Pricing; Futures Pricing; option pricing
- Q11 Agriculture: Aggregate Supply and Demand Analysis; Prices
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