... the United Kingdom
of data from 19 92, September 16 , 19 92 would stand out because for one day interest rates went up from
10 to 12 % (and were announced to go up to 15 %) as the government attempted ... y
it
(see, for example, Imbens andAngrist
19 94; Angrist 2004).
41
Milyo and Waldfogel (19 99), for example, collected data on prices from liquor
stores near the border of...
... as
p
NE
1
p
NE
2
D
Â
4b
11
b
22
4b
11
b
22
b
12
b
21
ÃÂ
c
1
2
C
a
1
2b
11
C
b
12
4b
11
Â
c
2
C
a
2
b
22
ÃÃ
ÄÂ
4b
11
b
22
4b
11
b
22
b
12
b
21
ÃÂ
c
2
2
C
a
2
2b
22
C
b
21
4b
22
Â
c
1
C
a
1
b
11
ÃÃ
D
Â
c
1
2
C
a
1
2b
11
C
b
12
4b
11
Â
c
2
C
a
2
b
22
ÃÃ
Â
c
2
2
C
a
2
2b
22
C
b
21
4b
22
Â
c
1
C
a
1
b
11
ÃÃ
‹
D ... were
respectively
p
NE...
... prices p
2
=p
1
11
Profitability calculation:
p
1
c
1
p1
‹
6
1
Á
11
.p
1
;p
2
;:::;p
J
/
C
p
2
c
2
p
2
p
2
p
1
DR
12
; 0 :1 6
1
2
C 0:2 1 0:29 D 0:56
p
2
c
2
p1
‹
6
1
Á
22
.p
1
;p
2
;:::;p
J
/
C
p
1
... linear-in-parameters differentiated
product demand system:
ln q
1
D Á
10
C Á
11
ln p
1
C Á
12
ln p
2
C Á
13
ln p
3
C
C Á
1J
ln p
J
C x
0...