In this paper we estimate and empirically test different behavioral theories of consumer reference price formation. Two major theories are proposed to model the reference price reaction: assimilation contrast theory and prospect theory. We assume that different consumer segments will use...

This paper presents a survey on panel data methods in which I emphasize new developments. In particular, linear multilevel models with a new variant are discussed. Furthermore, non linar, nonparametric and semiparametric models are analyzed. In contrast to linear models there do not exist...

This pdf contains a do file that shows how to estimate a latent class discrete choice panel data model in Stata via Maximum Likelihood and an EM algorithm.

Let U be an unobserved random variable with compact support and let e_t be unobserved i.i.d. random errors also with compact support. Observe the random variables V_t, X_t, and Y_t = 1{U +d X_t+e_t V_t}, t = T, where d is an unknown parameter. This type of model is relevant for many stated...

In many stated choice experiments researchers observe the random variables V_t , X_t , and Y_t = 1{U +δ X_t +e_t V_t }, t ≤ T , where δ is an unknown parameter and U and e_t are unobservable random variables. We show that under weak assumptions the distributions of U and e_t and also the...

This paper presents a survey on panel data methods in which I emphasize new developements. In particular, linear multilevel models with a new variant are discussed. Furthermore, non-linear, nonparametric and semiparametric models are analyzed. In contrast to linear models there do not exist...

In this paper we estimate and empirically test different behavioral theories of consumer reference price formation. Two major theories are proposed to model the reference price reaction: assimilation contrast theory and prospect theory. We assume that different consumer segments will use...

In dynamic discrete choice analysis, controlling for unobserved heterogeneity is an important issue, and finite mixture models provide flexible ways to account for unobserved heterogeneity. This paper studies nonparametric identifiability of type probabilities and type-specific component...

This paper analyzes the stability of monetary regimes in an economy where fiat money is endogenously created by the government, information about its value is imperfect, and learning is decentralized. We show that monetary stability depends crucially on the speed of information transmission in...

The paper compares two approaches to the estimation of panel probit models: the Generalized Method of Moments (GMM) and the Simulated Maximum Likelihood (SML) technique. Both have in common that they circumvent multiple integrations of joint density functions without the need to impose...