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Characterizations in a random record model with a non-identically distributed initial record

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  • Gadi Barlevy
  • H. N. Nagaraja

Abstract

We consider a sequence of random length M of independent absolutely continuous observations Xi, 1 = i = M, where M is geometric, X1 has cdf G, and Xi, i = 2, have cdf F. Let N be the number of upper records and Rn, n = 1, be the nth record value. We show that N is free of F if and only if G(x) = G0(F (x)) for some cdf G0 and that if E (|X2|) is finite so is E |Rn|) for n = 2 whenever N = n or N = n. We prove that the distribution of N along with appropriately chosen subsequences of E(Rn) characterize F and G, and along with subsequences of E Rn - Rn-1) characterize F and G up to a common location shift. We discuss some applications to the identification of the wage offer distribution in job search models.

Suggested Citation

  • Gadi Barlevy & H. N. Nagaraja, 2005. "Characterizations in a random record model with a non-identically distributed initial record," Working Paper Series WP-05-05, Federal Reserve Bank of Chicago.
    • Handle: RePEc:fip:fedhwp:wp-05-05
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    References listed on IDEAS

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    1. Eckstein, Zvi & van den Berg, Gerard J., 2007. "Empirical labor search: A survey," Journal of Econometrics, Elsevier, vol. 136(2), pages 531-564, February.
    2. Gadi Barlevy & H. N. Nagaraja, 2006. "Identification of Search Models with Initial Condition Problems," 2006 Meeting Papers 4, Society for Economic Dynamics.
    3. Burdett, Kenneth & Mortensen, Dale T, 1998. "Wage Differentials, Employer Size, and Unemployment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 257-273, May.
    4. Gadi Barlevy, 2008. "Identification of Search Models using Record Statistics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 75(1), pages 29-64.
    5. Eckstein, Zvi & Mortensen, Dale T., 2006. "Labor search," European Economic Review, Elsevier, vol. 50(4), pages 807-810, May.
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    Cited by:

    1. Gadi Barlevy & H. N. Nagaraja, 2006. "Identification of Search Models with Initial Condition Problems," 2006 Meeting Papers 4, Society for Economic Dynamics.
    2. Gadi Barlevy & H. N. Nagaraja, 2010. "Estimating Mobility Rates in Search Models with Initial Condition Problems," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(4), pages 780-799, October.

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    Keywords

    Wages; Labor mobility;

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