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Monotonicity and the Roy Model

Arnaud Chevalier and Gauthier Lanot ()

No KERP 2002/06, Keele Economics Research Papers from Centre for Economic Research, Keele University

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: C25 J31 (search for similar items in EconPapers)
Date: 2002-05
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Published in The Manchester School, Vol. 72(4), July 2004, pages 560-567. [ doi:10.1111/j.1467-9957.2004.00408.x ]

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