Department of Economics
University of Arizona
McClelland Hall 401
Tucson, AZ 85721
NBER Program Affiliations:
NBER Affiliation: Faculty Research Fellow
Institutional Affiliation: University of Arizona
NBER Working Papers and Publications
|July 2018||Escalation of Scrutiny: The Gains from Dynamic Enforcement of Environmental Regulations|
with Wesley Blundell, Gautam Gowrisankaran: w24810
The U.S. Environmental Protection Agency uses a dynamic approach to enforcing air pollution regulations, with repeat offenders subject to high fines and designation as high priority violators (HPV). We estimate the value of dynamic enforcement by developing and estimating a dynamic model of a plant and regulator, where plants decide when to invest in pollution abatement technologies. We use a fixed grid approach to estimate random coefficient specifications. Investment, fines, and HPV designation are costly to most plants. Eliminating dynamic enforcement would raise pollution damages by 164% with constant fines or raise fines by 519% with constant pollution damages.
|February 2018||Designing Dynamic Subsidies to Spur Adoption of New Technologies|
with Derek Lemoine: w24310
We analyze the efficient subsidy for durable good technologies. We theoretically demonstrate that a policymaker faces a tension between intertemporally price discriminating by designing a subsidy that increases over time and taking advantage of future technological progress by designing a subsidy that decreases over time. Using dynamic estimates of household preferences for residential solar in California, we show that the efficient subsidy increases over time. The regulator's spending quintuples when households anticipate future technological progress and future subsidies.
|October 2013||The Intergenerational Transmission of Automobile Brand Preferences: Empirical Evidence and Implications for Firm Strategy|
with Soren T. Anderson, Ryan Kellogg, James M. Sallee: w19535
We document a strong correlation in the brand of automobile chosen by parents and their adult children, using data from the Panel Study of Income Dynamics. This correlation could represent transmission of brand preferences across generations, or it could result from correlation in family characteristics that determine brand choice. We present a variety of empirical specifications that lend support to the former interpretation and to a mechanism that relies at least in part on state dependence. We then discuss implications of intergenerational brand preference transmission for automakers' product-line strategies and for the strategic pricing of vehicles to different age groups.
Published: Soren T. Anderson & Ryan Kellogg & Ashley Langer & James M. Sallee, 2015. "The Intergenerational Transmission of Automobile Brand Preferences," The Journal of Industrial Economics, vol 63(4), pages 763-793.