ESTIMATION OF DYNAMIC DISCRETE CHOICE MODELS BY MAXIMUM LIKELIHOOD AND THE SIMULATED METHOD OF MOMENTS

B-Tier
Journal: International Economic Review
Year: 2015
Volume: 56
Issue: 2
Pages: 331-357

Authors (3)

Philipp Eisenhauer (not in RePEc) James J. Heckman (University of Chicago) Stefano Mosso (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

We compare the performance of maximum likelihood (ML) and simulated method of moments (SMM) estimators for dynamic discrete choice models. We construct and estimate a simplified dynamic structural model of education that captures some basic features of educational choices in the United States in the 1980s and early 1990s. We use estimates from our model to simulate a synthetic data set and assess the ability of ML and SMM to recover the model parameters on this sample. We investigate the performance of alternative tuning parameters for SMM.

Technical Details

RePEc Handle
repec:wly:iecrev:v:56:y:2015:i:2:p:331-357
Journal Field
General
Author Count
3
Added to Database
2026-02-02