This paper aims to provide a method for calculating the utility function and discount rate of the discrete-time Ramsey–Cass–Koopmans model from the policy and production functions. In contrast to similar works, our method ensures the uniqueness of the utility function up to positive affine...

We estimate a structural dynamic programming model of schooling decisions with unobserved heterogeneity in school ability and market ability on a sample taken from the National Longitudinal Survey of Youth (NLSY). Both the instantaneous utility of attending school and the wage regression...

We estimate a dynamic programming model of schooling decisions in which the degree of risk aversion can be inferred from schooling decisions. In our model, individuals are heterogeneous with respect to school and market abilities but homogeneous with respect to the degree of risk aversion. We...