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Semiparametric Estimation of Dynamic Binary Choice Panel Data Models

Fu Ouyang, Thomas Tao Yang

arXiv 24 Feb 2022 · Econometrics · publishedEconometric Theory (2024) · 2 citations (OpenAlex)

arXiv:2202.12062 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We propose a new approach to the semiparametric analysis of panel data binary choice models with fixed effects and dynamics (lagged dependent variables). The model we consider has the same random utility framework as in Honore and Kyriazidou (2000). We demonstrate that, with additional serial dependence conditions on the process of deterministic utility and tail restrictions on the error distribution, the (point) identification of the model can proceed in two steps, and only requires matching the value of an index function of explanatory variables over time, as opposed to that of each explanatory variable. Our identification approach motivates an easily implementable, two-step maximum score (2SMS) procedure -- producing estimators whose rates of convergence, in contrast to Honore and Kyriazidou's (2000) methods, are independent of the model dimension. We then derive the asymptotic properties of the 2SMS procedure and propose bootstrap-based distributional approximations for inference. Monte Carlo evidence indicates that our procedure performs adequately in finite samples.

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61
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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
1Honoré, B. E. and E. Kyriazidou (2000) Panel data discrete choice models with lagged dependent variables1.00073100%
2Manski, C. F (1987) Semiparametric analysis of random effects linear models from binary panel data0.92843100%
3Manski, C. F (1985) Semiparametric analysis of discrete response0.84333100%
4Honoré, B. E. and A. Lewbel (2002) Semiparametric binary choice panel data models without strictly exogeneous regressors0.81142100%
5Honoré, B. E. and E. Tamer (2006) Bounds on parameters in panel dynamic discrete choice models0.81142100%
6Hong, H. and J. Li (2020) The numerical bootstrap0.79410350%
7Kim, J. and D. Pollard (1990) Cube root asymptotics0.7948550%
8Chen, S., S. Khan, and X. Tang (2019) Exclusion Restrictions in Dynamic Binary Choice Panel Data Models: Comment on “Semiparametric Binary Choice Panel Data Models Wi…0.73732100%
9Williams, B (2019) Nonparametric identification of discrete choice models with lagged dependent variables0.73732100%
10Altonji, J. G. and R. L. Matzkin (2005) Cross section and panel data estimators for nonseparable models with endogenous regressors0.64422100%

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Cited by, within the corpus

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

Citing paperIntensityMentionsSections
1Revisiting Panel Data Discrete Choice Models with Lagged Dependent Variables0.965105
2Semiparametric Dynamic Logit Model with Endogenous Networks0.64422