American Economic Journal: Microeconomics
no. 3, August 2023
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.
Petterson, Marco Stenborg, David Seim, and Jesse M. Shapiro.
"Bounds on a Slope from Size Restrictions on Economic Shocks."
American Economic Journal: Microeconomics,
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Contingent Pricing; Futures Pricing; option pricing
Agriculture: Aggregate Supply and Demand Analysis; Prices