arXiv 21 Nov 2021 · Econometrics · 1 citations (OpenAlex)
arXiv:2111.10721 · PDF · DOI · OpenAlex · Extracted main text
We study identification of dynamic discrete choice models with hyperbolic discounting. We show that the standard discount factor, present bias factor, and instantaneous utility functions for the sophisticated agent are point-identified from observed conditional choice probabilities and transition probabilities in a finite horizon model. The main idea to achieve identification is to exploit variation in the observed conditional choice probabilities over time. We present the estimation method and demonstrate a good performance of the estimator by simulation.
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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 and Wang (2015) Estimating dynamic discrete choice models with hyperbolic discounting, with an application to mammography decisions | 1.000 | 11 | 3 | 100% |
| 2 | An, Hu and Xiao (2021) Dynamic decisions under subjective expectations: A structural analysis | 0.956 | 8 | 4 | 88% |
| 3 | Magnac and Thesmar (2002) Identifying dynamic discrete decision processes | 0.928 | 4 | 3 | 100% |
| 4 | Kennan and Walker (2011) The effect of expected income on individual migration decisions | 0.874 | 5 | 2 | 100% |
| 5 | Abbring and Daljord (2020) Identifying the discount factor in dynamic discrete choice models | 0.737 | 3 | 2 | 100% |
| 6 | De Groote and Verboven (2019) Subsidies and time discounting in new technology adoption: Evidence from solar photovoltaic systems | 0.737 | 3 | 2 | 100% |
| 7 | Laibson (1997) Golden eggs and hyperbolic discounting | 0.737 | 3 | 2 | 100% |
| 8 | Abbring and Daljord (2020) A comment on “Estimating dynamic discrete choice models with hyperbolic discounting” by Hanming Fang and Yang Wang | 0.644 | 2 | 2 | 100% |
| 9 | Hotz and Miller (1993) Conditional choice probabilities and the estimation of dynamic models | 0.644 | 2 | 2 | 100% |
| 10 | Phelps and Pollak (1968) On second-best national saving and game-equilibrium growth | 0.644 | 2 | 2 | 100% |
Showing the top 10 of 32 scored citations.