This paper introduces a new and simple decomposition method for a binary choice model that is equivalent to the Blinder-Oaxaca decomposition analysis for wage differentials. The decomposition method is first developed for a single probit model and later generalized to a simultaneous equations...

This paper introduces a new and simple decomposition method for a binary choice model that is equivalent to the Blinder-Oaxaca decomposition analysis for wage differentials. The decomposition method is first developed for a single probit model and later generalized to a simultaneous equations...

This paper investigates the public sector wage premium in the UK using a microfounded eco-nomic model and indirect inference. The neoclassical wage determination model is tested and estimated without introducing any gap between the theoretical and empirical models. To test if the model is true,...

We compare the performance of maximum likelihood (ML) and simulated method of moments (SMM) estimation 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...

Network planning models, which forecast the profitability of airline schedules, support many critical decisions, including equipment purchase decisions. Network planning models include an itinerary choice model which is used to allocate air total demand in a city pair to different itineraries....

In the last three decades, a variety of stochastic reserving models has been proposed in the general insurance literature mainly using (or reproducing) the eminent Chain-Ladder claims reserving estimates. In practice, when the data doesn't satisfy the Chain-Ladder assumptions, high prediction...

The paper introduces four unbiased probability-simulators which produce continuous (simulated) log-likelihood functions with almost everywhere continuous derivatives. Identification conditions are derived which show that in the presence of intercepts in the latent utilities, then the shocks'...

We compare the performance of maximum likelihood (ML) and simulated method of moments (SMM) estimation 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 generalized multinomial logit (GMNL) model nests the random parameters logit (RPL) model and the scale heterogeneity logit (SMNL) model. The RPL model captures the preference heterogeneity among individuals by allowing the coefficients to be random with any distribution. It has been often...

Researchers often use data from multiple datasets to conduct credible econometric and statistical analysis. The most reliable way to link entries across such datasets is to exploit unique identifiers if those are available. Such linkage however may result in privacy violations revealing...