STATISTICAL METHODS FOR ADVANCED ECONOMETRIC MODELS WITH APPLICATIONS TO VEHICLE HOLDING AND SPEED QUANTILES DISTRIBUTION

This dissertation proposes statistical methods to formulate, estimate and apply complex transportation models. Two main problems are part of the analyses conducted and presented in this dissertation. The first method solves an econometric problem and is concerned with the joint estimation of models that contain both discrete and continuous decision variables. The use of ordered models along with a regression is proposed and their effectiveness is evaluated with respect to unordered models. Procedure to calculate and optimize the log-likelihood functions of both discrete-continuous approaches are derived, and difficulties associated with the estimation of unordered models explained. Numerical approximation methods based on the Genz algortithm are implemented in order to solve the multidimensional integral associated with the unordered modeling structure. The problems deriving from the lack of smoothness of the probit model around the maximum of the log-likelihood function, which makes the optimization and the calculation of standard deviations very difficult, are carefully analyzed. A methodology to perform out-of-sample validation in the context of a joint model is proposed. Comprehensive numerical experiments have been conducted on both simulated and real data. In particular, the discrete-continuous models are estimated and applied to vehicle ownership and use models on data extracted from the 2009 National Household Travel Survey. The second part of this work offers a comprehensive statistical analysis of free-flow speed distribution; the method is applied to data collected on a sample of roads in Italy. A linear mixed model that includes speed quantiles in its predictors is estimated. Results show that there is no road effect in the analysis of free-flow speeds, which is particularly important for model transferability. A very general framework to predict random effects with few observations and incomplete access to model covariates is formulated and applied to predict the distribution of free-flow speed quantiles. The speed distribution of most road sections is successfully predicted; jack-knife estimates are calculated and used to explain why some sections are poorly predicted. Eventually, this work contributes to the literature in transportation modeling by proposing econometric model formulations for discrete-continuous variables, more efficient methods for the calculation of multivariate normal probabilities, and random effects models for free-flow speed estimation that takes into account the survey design. All methods are rigorously validated on both real and simulated data.

Assessing the influence of abiotic factors and leaf-level properties on the stability of growing-season canopy greenness in a deciduous forest

Maps depicting spatial pattern in the stability of summer greenness could advance understanding of how forest ecosystems will respond to global changes such as a longer growing season. Declining summer greenness, or “greendown”, is spectrally related to declining near-infrared reflectance and is observed in most remote sensing time series to begin shortly after peak greenness at the end of spring and extend until the beginning of leaf coloration in autumn,. Understanding spatial patterns in the strength of greendown has recently become possible with the advancement of Landsat phenology products, which show that greendown patterns vary at scales appropriate for linking these patterns to proposed environmental forcing factors. This study tested two non-mutually exclusive hypotheses for how leaf measurements and environmental factors correlate with greendown and decreasing NIR reflectance across sites. At the landscape scale, we used linear regression to test the effects of maximum greenness, elevation, slope, aspect, solar irradiance and canopy rugosity on greendown. Secondly, we used leaf chemical traits and reflectance observations to test the effect of nitrogen availability and intrinsic water use efficiency on leaf-level greendown, and landscape-level greendown measured from Landsat. The study was conducted using Quercus alba canopies across 21 sites of an eastern deciduous forest in North America between June and August 2014. Our linear model explained greendown variance with an R2=0.47 with maximum greenness as the greatest model effect. Subsequent models excluding one model effect revealed elevation and aspect were the two topographic factors that explained the greatest amount of greendown variance. Regression results also demonstrated important interactions between all three variables, with the greatest interaction showing that aspect had greater influence on greendown at sites with steeper slopes. Leaf-level reflectance was correlated with foliar δ13C (proxy for intrinsic water use efficiency), but foliar δ13C did not translate into correlations with landscape-level variation in greendown from Landsat. Therefore, we conclude that Landsat greendown is primarily indicative of landscape position, with a small effect of canopy structure, and no measureable effect of leaf reflectance. With this understanding of Landsat greendown we can better explain the effects of landscape factors on vegetation reflectance and perhaps on phenology, which would be very useful for studying phenology in the context of global climate change

Essays on Information Frictions, Prices and Unemployment

I investigate the effects of information frictions in price setting decisions. I show that firms' output prices and wages are less sensitive to aggregate economic conditions when firms and workers cannot perfectly understand (or know) the aggregate state of the economy. Prices and wages respond with a lag to aggregate innovations because agents learn slowly about those changes, and this delayed adjustment in prices makes output and unemployment more sensitive to aggregate shocks. In the first chapter of this dissertation, I show that workers' noisy information about the state of the economy help us to explain why real wages are sluggish. In the context of a search and matching model, wages do not immediately respond to a positive aggregate shock because workers do not (yet) have enough information to demand higher wages. This increases firms' incentives to post more vacancies, and it makes unemployment volatile and sensitive to aggregate shocks. This mechanism is robust to two major criticisms of existing theories of sluggish wages and volatile unemployment: the flexibility of wages for new hires and the cyclicality of the opportunity cost of employment. Calibrated to U.S. data, the model explains 60% of the overall unemployment volatility. Consistent with empirical evidence, the response of unemployment to TFP shocks predicted by my model is large, hump-shaped, and peaks one year after the TFP shock, while the response of the aggregate wage is weak and delayed, peaking after two years. In the second chapter of this dissertation, I study the role of information frictions and inventories in firms' price setting decisions in the context of a monetary model. In this model, intermediate goods firms accumulate output inventories, observe aggregate variables with one period lag, and observe their nominal input prices and demand at all times. Firms face idiosyncratic shocks and cannot perfectly infer the state of nature. After a contractionary nominal shock, nominal input prices go down, and firms accumulate inventories because they perceive some positive probability that the nominal price decline is due to a good productivity shock. This prevents firms' prices from decreasing and makes current profits, households' income, and aggregate demand go down. According to my model simulations, a 1% decrease in the money growth rate causes output to decline 0.17% in the first quarter and 0.38% in the second followed by a slow recovery to the steady state. Contractionary nominal shocks also have significant effects on total investment, which remains 1% below the steady state for the first 6 quarters.