Dynamic binary outcome models with maximal heterogeneity

A-Tier
Journal: Journal of Econometrics
Year: 2014
Volume: 178
Issue: 2
Pages: 805-823

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

Most econometric schemes to allow for heterogeneity in micro behavior have two drawbacks: they do not fit the data and they rule out interesting economic models. In this paper we consider the time homogeneous first order Markov (HFOM) model that allows for maximal heterogeneity. That is, the modeling of the heterogeneity does not impose anything on the data (except the HFOM assumption for each agent) and it allows for any theory model (that gives a HFOM process for an individual observable variable). ‘Maximal’ means that the joint distribution of initial values and the transition probabilities is unrestricted.

Technical Details

RePEc Handle
repec:eee:econom:v:178:y:2014:i:2:p:805-823
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-24