Many dynamic problems in economics are characterized by large state spaces, which make both computing and estimating the model infeasible. We introduce a method for approximating the value function of high-dimensional dynamic models based on sieves and establish results for the: (a) consistency,...

This paper develops and estimates a model of occupational choice and learning that allows for correlated learning across occupation specificabilities. In the labor market, workers learn about their potential outcomes in all occupations, not just their current occupation. Based on what they...

We estimate the effect of binge drinking on accident and emergency attendances, road accidents, arrests, and the number of police officers on duty using a variety of unique data from Britain and a two-sample minimum distance estimation procedure. Our estimates, which reveal sizeable effects of...