Christian Opp
Institution
Simon Business School, University of Rochester
PhD Year
2011
opp@rochester.edu
FTG Membership
Member
Website
http://www.christianopp.info
Featured Work
Aug 5, 2025
How (Not) to Identify Demand Elasticities in Dynamic Asset Markets
We evaluate approaches to estimating demand elasticities in dynamic asset markets, both theoretically and empirically. We establish strict, necessary conditions that the dynamics of instrumented asset price variation must satisfy for valid identification. We illustrate these insights in a general equilibrium model of dynamic trade and derive the magnitude of biases that arise when these conditions are violated. Estimates based on static IO models are...
