We present a new approach to the estimation of production functions that allows for richer patterns of firm heterogeneity than can be accommodated under the proxy variable methods of and Olley/Pakes and Levinsohn/Petrin. In particular, we show that the economics of the firms static input choice...

We estimate a dynamic model of default for a cohort of Colombian debtors between 1997 and 2004, which was a period of unprecedented financial stress in Colombia. We develop a methodological framework based on a fully dynamic behavioral model that accounts for both cross-sectional and aggregate...

The recent literature on estimation of structural models relies heavily on the specification of dynamic factors to control for unobserved heterogeneity across agents. A general filtering technique is the Particle Filtering, as shown in Fernandez-Villaverde and Rubio-Ramirez (2007). The main...