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Heterogeneity, Uncertainty and Learning: Semiparametric Identification and Estimation

Jackson Bunting, Paul Diegert, Arnaud Maurel

arXiv 13 Feb 2024 · Econometrics · 2 citations (OpenAlex)

arXiv:2402.08575 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We provide identification results for a broad class of learning models in which continuous outcomes depend on three types of unobservables: known heterogeneity, initially unknown heterogeneity that may be revealed over time, and transitory uncertainty. We consider a common environment where the researcher only has access to a short panel on choices and realized outcomes. We establish identification of the outcome equation parameters and the distribution of the unobservables, under the standard assumption that unknown heterogeneity and uncertainty are normally distributed. We also show that, absent known heterogeneity, the model is identified without making any distributional assumption. We then derive the asymptotic properties of a sieve MLE estimator for the model parameters, and devise a tractable profile likelihood-based estimation procedure. Our estimator exhibits good finite-sample properties. Finally, we illustrate our approach with an application to ability learning in the context of occupational choice. Our results point to substantial ability learning based on realized wages.

Citation extraction

67
references
126
in-text mentions
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distinct cited
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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
1Arcidiacono, P., E. Aucejo, A. Maurel, and T. Ransom (2025) College attrition and the dynamics of information revelation1.00073100%
2Cunha, F., J. J. Heckman, and S. Navarro (2005) Separating uncertainty from heterogeneity in life cycle earnings0.92844100%
3Bruni, C. and G. Koch (1985) Identifiability of continuous mixtures of unknown gaussian distributions0.8749367%
4Freyberger, J (2018) Non-parametric panel data models with interactive fixed effects0.8229356%
5Antonovics, K. and L. Golan (2012) Experimentation and job choice0.81142100%
6Miller, R. A (1984) Job matching and occupational choice0.81142100%
7Pastorino, E (2024) Careers in firms: The role of learning about ability and human capital acquisition0.81142100%
8Cunha, F. and J. J. Heckman (2016) Decomposing trends in inequality in earnings into forecastable and uncertain components0.7374350%
9Chan, T. Y. and B. H. Hamilton (2006) Learning, private information, and the economic evaluation of randomized experiments0.73732100%
10Pastorino, E (2015) Job matching within and across firms0.73732100%

Showing the top 10 of 67 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
2Heterogeneous Treatment Effects via Linear Dynamic Panel Data Models0.40511
3Empirical Bayes Estimation in Heterogeneous Coefficient Panel Models0.40511
4Faster estimation of dynamic discrete choice models using index invertibility0.00011