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Continuous permanent unobserved heterogeneity in dynamic discrete choice models

Jackson Bunting

arXiv 8 Feb 2022 · Econometrics · 3 citations (OpenAlex)

arXiv:2202.03960 · PDF · DOI · OpenAlex · Extracted main text

Abstract

In dynamic discrete choice (DDC) analysis, it is common to use mixture models to control for unobserved heterogeneity. However, consistent estimation typically requires both restrictions on the support of unobserved heterogeneity and a high-level injectivity condition that is difficult to verify. This paper provides primitive conditions for point identification of a broad class of DDC models with multivariate continuous permanent unobserved heterogeneity. The results apply to both finite- and infinite-horizon DDC models, do not require a full support assumption, nor a long panel, and place no parametric restriction on the distribution of unobserved heterogeneity. In addition, I propose a seminonparametric estimator that is computationally attractive and can be implemented using familiar parametric methods.

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Most heavily cited references

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.

ReferenceIntensityMentionsSectionsMain text
1Kasahara, Hiroyuki, Shimotsu, Katsumi (2009) Nonparametric identification of finite mixture models of dynamic discrete choices1.000183100%
2Heckman, James, Singer, Burton (1984) A method for minimizing the impact of distributional assumptions in econometric models for duration data1.00053100%
3Kristensen, Dennis, Mogensen, Patrick K, Moon, Jong Myun, Schjerning… (2021) Solving dynamic discrete choice models using smoothing and sieve methods0.9507486%
4Altuğ, Sumru, Miller, Robert A (1998) The effect of work experience on female wages and labour supply0.92815480%
5Kwon, Caleb, Mbakop, Eric (2021) Estimation of the number of components of nonparametric multivariate finite mixture models0.8226283%
6Rust, John (1987) Optimal replacement of GMC bus engines: An empirical model of Harold Zurcher0.81142100%
7Aguirregabiria, Victor, Mira, Pedro (2010) Dynamic discrete choice structural models: A survey0.73732100%
8Hu, Yingyao, Shum, Matthew (2012) Nonparametric identification of dynamic models with unobserved state variables0.69381100%
9Fox, Jeremy T, Kim, Kyoo Il, Yang, Chenyu (2016) A simple nonparametric approach to estimating the distribution of random coefficients in structural models0.6936333%
10Johnson, Edward G (2004) Identification in discrete choice models with fixed effects0.69361100%

Showing the top 10 of 60 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Identification and Estimation of Demand Models with Endogenous Product Entry and Exit0.51121
2Faster estimation of dynamic discrete choice models using index invertibility0.40511
3Heterogeneity, Uncertainty and Learning: Semiparametric Identification and Estimation0.40511