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Use this tag to discuss empirical papers and issues arising when applying theoretical models to data. For theoretical econometric issues, use the `econometrics` tag

1 vote

Estimation of point-identified Dynamic Discrete Choice models with moment inequalities

Function $Q$ has to be minimized wrt $(\theta,\alpha)$. The parameters $(\theta,\alpha)$ compatible with Nash equilibrium and rationalizing (or generating) the data have to satisfy $$g(x;\theta,\alpha …
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4 votes

Derivation of index decomposition analysis

Sorry for this down-to-earth answer, but I think that the underlying assumption simply states that $V_j(t)$ is constant (up to an uncorrelated random term), or in other words: $$ V_j(t)=w_j,$$ which i …
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3 votes
Accepted

How to deal with multiplicatively constant and additively constant fixed effects?

Without random term, this exercise is closer to nonlinear equations solving than to econometrics. If the true relationship between income and apples is: $$ \log( y_{nt} ) = \gamma \log( x_{nt}),$$ but …
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10 votes
Accepted

Estimating CES utility (not production) function parameters

It may be interesting to exploit the homothetic separability of the CES utility function in $x$. It implies that $$\frac{x_i}{x_j} = \left( \frac{\alpha_i}{\alpha_j}\frac{p_j}{p_i} \right)^\sigma $$ a …
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