Jaap H. Abbring, Øystein Daljord
arXiv 31 Aug 2018 · Econometrics · publishedQuantitative Economics (2020) · 50 citations (OpenAlex)
arXiv:1808.10651 · PDF · DOI · OpenAlex · Extracted main text
Empirical research often cites observed choice responses to variation that shifts expected discounted future utilities, but not current utilities, as an intuitive source of information on time preferences. We study the identification of dynamic discrete choice models under such economically motivated exclusion restrictions on primitive utilities. We show that each exclusion restriction leads to an easily interpretable moment condition with the discount factor as the only unknown parameter. The identified set of discount factors that solves this condition is finite, but not necessarily a singleton. Consequently, in contrast to common intuition, an exclusion restriction does not in general give point identification. Finally, we show that exclusion restrictions have nontrivial empirical content: The implied moment conditions impose restrictions on choices that are absent from the unconstrained model.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Fang, H. and Y. Wang (2015) Estimating dynamic discrete choice models with hyperbolic discounting, with an application to mammography decisions | 1.000 | 5 | 3 | 100% |
| 2 | Magnac, T. and D. Thesmar (2002) Identifying dynamic discrete choice processes | 0.989 | 30 | 6 | 97% |
| 3 | Arcidiacono, P. and R. Miller (2011) Conditional choice probability estimation of dynamic discrete choice models with unobserved heterogeneity | 0.874 | 6 | 2 | 100% |
| 4 | Rust, J (1987) Optimal replacement of GMC bus engines: An empirical model of Harold Zurcher | 0.874 | 5 | 2 | 100% |
| 5 | Yao, S., C. F. Mela, J. Chiang, and Y. Chen (2012) Determining consumers discount rates with field studies | 0.811 | 4 | 2 | 100% |
| 6 | Arcidiacono, P. and R. Miller (2017) Identifying dynamic discrete choice models of short panels | 0.737 | 3 | 2 | 100% |
| 7 | Rust, J (1994) Structural estimation of Markov decision processes | 0.737 | 3 | 2 | 100% |
| 8 | Norets, A. and X. Tang (2014) Semiparametric inference in dynamic binary choice models | 0.737 | 3 | 2 | 100% |
| 9 | Abbring, J. H. and . Daljord (2019) Estimating dynamic discrete choice models with hyperbolic discounting self | 0.644 | 2 | 2 | 100% |
| 10 | Keane, M. P. and K. I. Wolpin (1997, June) (1997) The career decisions of young men | 0.644 | 2 | 2 | 100% |
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