Abstract:
In this note we study the implications on a bivariate normal Roy Model of two sets of monotonicity hypotheses proposed recently by Manski and Pepper (2000). In that simple context, we show that these hypotheses imply strong restrictions on the correlations structure between the decision and the rewards.
Keywords:Roy Model; Monotonicity Conditions (search for similar items in EconPapers) JEL-codes:C25J31 (search for similar items in EconPapers) Date: 2002-11-05 Note: Type of Document - pdf; prepared on pc; pages: 16