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5 votes
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How to get statistics for structural parameters after estimating a reduced form model

It depends$\ldots$ In your setting, the structural parameter $\psi$ is simply $1$ minus the value of the reduced form parameter $\beta$: $$ \psi = 1 - \beta. $$ In such case, the mean of the estimator ...
tdm's user avatar
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4 votes

What is structural estimation compared to reduced form estimation?

I would like to complement the interesting, and clearly researched answer by jayk, by sharing the outlook more from the perspective of current econometricians. From the very good book "...
An old man in the sea.'s user avatar
3 votes

Convert DSGE paper to structural econometrics, anything to be noted´╝č

There's no correct method to do this. DSGE guys will estimate the model by doing something like this: plugging in priors for their parameters and then running an optimization that minimizes the ...
Fix.B.'s user avatar
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3 votes

Continuous logit framework

This derivation follows the same procedure as the one used in discrete logit model. Let's denote the index of the maximum given $y$ is selected is $(y_i^m,\varepsilon_i^m)$, where $y_i^m = y$. We ...
Alalalalaki's user avatar
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2 votes

Structural Modelling of Expectations/Beliefs

Check for example Postel-Vinay and Robin (2002) and references therein to see how people go about structurally modeling the labour market. The general framework is a dynamic one, where the job-search ...
IMA's user avatar
  • 176
2 votes

Continuous logit framework

As they state, $\pi(y|x)$ is the density of $\ln\left(\int_Y \exp(U(x,y) dy\right)$ (the density being the derivative of the cdf). If we take the derivative of $\ln\left(\int_Y \exp(U(x,y')) dy' \...
tdm's user avatar
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1 vote

Binary-continuous choice model in empirical consumer choices

It may not be a 100% match (and the details are a bit fuzzy in my memory), but I believe the model would be similar to Ericson and Pakes (1995). In their model, there are $N$ firms who make sequential ...
Walrasian Auctioneer's user avatar
1 vote

Economic Reasoning for Structural change vs Cyclical change

It is not possible ex-ante, it's all about: economic interpretations, i.e., economic schools of thought expectations on central banks' next moves, political/ideological views, the (hidden and/or ...
keepAlive's user avatar
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1 vote

How do I begin to approach this dynamic discrete choice model?

$b_t$ is the decision variable, and the value function is formulated as a function of the state variable of the problem. In your case, the role of the state variable is played by the $p$ parameter, ...
Alecos Papadopoulos's user avatar

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