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We derive marginal conditions of optimality (i.e., Euler equations) for a general class of Dynamic Discrete Choice (DDC) structural models. These conditions can be used to estimate structural parameters in these models without having to solve for or approximate value functions. This result...
Persistent link: https://www.econbiz.de/10015236644
Empirically studying dynamic competition in oligopoly markets requires dealing with large states spaces and tackling difficult computational problems, while handling heterogeneity and multiple equilibria. In this paper, we discuss some of the ways recent work in Industrial Organization has dealt...
Persistent link: https://www.econbiz.de/10010332122
This paper studies the integration of deposit and loan markets, which may be constrained by the geographic dispersion of depositors, borrowers, and banks. This dispersion results in problems of asymmetric information, monitoring and transaction costs, which in turn may prevent deposits from...
Persistent link: https://www.econbiz.de/10011939453
What effect does rising income inequality have on longevity in advanced developed economies? This paper focuses on the effect of income inequality on mortality rates for men and women in a subset of OECD countries over nearly six decades from 1950-2008. Using adult mortality rates at aged...
Persistent link: https://www.econbiz.de/10011657666
This paper deals with identification of discrete games of incomplete information when we allow for three types of unobservables: payoff-relevant variables, both players' private information and common knowledge, and nonpayoff-relevant variables that determine the selection between multiple...
Persistent link: https://www.econbiz.de/10012215407
Imposing equilibrium restrictions provides substantial gains in the estimation of dynamic discrete games. Estimation algorithms imposing these restrictions have different merits and limitations. Algorithms that guarantee local convergence typically require the approximation of high-dimensional...
Persistent link: https://www.econbiz.de/10013189769
Persistent link: https://www.econbiz.de/10012536957
This paper deals with identification of discrete games of incomplete information when we allow for three types of unobservables: payoff‐relevant variables, both players' private information and common knowledge, and nonpayoff‐relevant variables that determine the selection between multiple...
Persistent link: https://www.econbiz.de/10012637274
Imposing equilibrium restrictions provides substantial gains in the estimation of dynamic discrete games. Estimation algorithms imposing these restrictions have different merits and limitations. Algorithms that guarantee local convergence typically require the approximation of high‐dimensional...
Persistent link: https://www.econbiz.de/10012810911
Abstract This paper studies the identification of players’ preferences and beliefs in discrete choice games using experimental data. The experiment comprises a set of games that differ in their matrices of monetary payoffs. The researcher is interested in the identification of preferences...
Persistent link: https://www.econbiz.de/10014612618