Semiparametric estimation of Markov decision processes with continuous state space

A-Tier
Journal: Journal of Econometrics
Year: 2012
Volume: 166
Issue: 2
Pages: 320-341

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We propose a general two-step estimator for a popular Markov discrete choice model that includes a class of Markovian games with continuous observable state space. Our estimation procedure generalizes the computationally attractive methodology of Pesendorfer and Schmidt-Dengler (2008) that assumed finite observable states. This extension is non-trivial as the policy value functions are solutions to some type II integral equations. We show that the inverse problem is well-posed. We provide a set of primitive conditions to ensure root-T consistent estimation for the finite dimensional structural parameters and the distribution theory for the value functions in a time series framework.

Technical Details

RePEc Handle
repec:eee:econom:v:166:y:2012:i:2:p:320-341
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-25