In the first chapter, I study the adoption of tractors by U.S. farmers in the early 20th century. First, I present reduced-form evidence that highlights the importance of cross-state differences in wages and farm sizes for tractor adoption. The data suggest that the adoption rates are positively associated with wages and average farm size but negatively related with the variation of farm size within-state, and that if size distribution is omitted, the effect of wages is overestimated. Next, I estimate two structural models in which the technology choice depends explicitly on farm wages and farm size. Both models are able to accurately predict the observed cross-state adoption rates. Finally, I use the second model, which produces the most precise estimates while incorporating within-state farm heterogeneity, to conduct counterfactual exercises. Results show that changes to either farm wages or land size distribution lead to changes in the predicted adoption rates. In particular, if regional differences in farm wages and farm size distribution are taken away, one can no longer replicate the observed adoption patterns across states. In the second chapter, I estimate the demand for housing in Bogotá, modeling electricity consumption explicitly to take into account the crossed subsidies included in Colombian utility rates. I use household level data on housing prices, observable dwelling attributes, and demographic variables to recover the willingness to pay for housing characteristics following the three-step estimation procedure suggested by Bajari and Kahn (2005). First, I regress the price of housing against different observable dwelling characteristics to recover the implicit price of each feature. Next, I infer household-specific preference parameters from the utility maximizing first-order conditions, where a household's utility depends on these observable characteristics. Finally, I analyze the relationship between demographic variables and the taste parameters estimated in the previous step. In order to study the impact of subsidies on households' housing decisions, I focus on the impact of changes in the price of electricity on the choice of dwelling size. I find that subsidized households choose bigger dwellings than they would in the absence of subsidies, while those who are taxed choose smaller ones.