nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2005‒10‒22
four papers chosen by
Philip Yu
Hong Kong University

  1. Domestic Competition Spurs Exports: The Indian Example By Tushar Poddar
  2. Labor Supply and Child Care Costs: The Effect of Rationing By Daniela Del Boca; Daniela Vuri
  3. Collective Labour Supply: Heterogeneity and Nonparticipation By Richard Blundell; Pierre-André Chiappori; Thierry Magnac; Costas Meghir
  4. Dynamic Discrete Choice and Dynamic Treatment Effects By James J. Heckman; Salvador Navarro

  1. By: Tushar Poddar
    Abstract: India's exports nearly tripled in the 1990s. Decomposing export growth shows that it has been driven by incumbent firms rather than the entry of new firms. By using a new panel on Indian firms and estimating a dynamic discrete-choice model of the firm's decision to export, we find evidence that economic liberalization has led to greater domestic competition, spurring firm efficiency and increasing Indian firms' competitiveness and ability to export. We show that export growth has been an outcome of local firm innovation which has come about due to increased competitive pressure from FDI entry.
    Keywords: Competition , Exports , India , Trade , Economic models ,
    Date: 2004–09–27
  2. By: Daniela Del Boca (University of Turin, CHILD and IZA Bonn); Daniela Vuri (University of Florence, CHILD and IZA Bonn)
    Abstract: In Italy the participation of women has not increased very much in the last few decades relative to other developed countries and it is still among the lowest in Europe. The female employment rate stands almost 13 percentage points below the EU average and 22 below the Lisbon target. One of the most important reasons is related to the characteristics of child care system. In this paper we analyze the characteristics of the child care system in Italy and its relationship to the labor market participation decision of mothers. We present a simple discrete choice framework in which the two decisions can be jointly considered, which also allows for simple forms of rationing and estimate a bivariate probit model of the child care and employment decisions and interpret the results within the framework of our model. We find evidence that rationing is an important factor in interpreting price effects on utilization rates.
    Keywords: labor market decisions, fertility, child care
    JEL: J2 C3 D1
    Date: 2005–09
  3. By: Richard Blundell (University College London, Institute for Fiscal Studies and IZA Bonn); Pierre-André Chiappori (University of Chicago and Columbia University); Thierry Magnac (GREMAQ-IDEI, Université Toulouse 1 Sciences Sociales and IZA Bonn); Costas Meghir (University College London, Institute for Fiscal Studies and IZA Bonn)
    Abstract: We present identification and estimation results for the "collective" model of labour supply in which there are discrete choices, censoring of hours and nonparticipation in employment. We derive the collective restrictions on labour supply functions and contrast them with restrictions implied by the usual "unitary" framework. Using the large changes in the wage structure between men and women in the UK over the last two decades we estimate a collective labor supply model for married couples without children. The implications of the unitary framework are rejected while those of the collective approach are not. The estimates of the sharing rule show that wages have a strong influence on bargaining power within couples.
    Keywords: collective models, labor supply
    JEL: D11 D12 D13 D70 J22
    Date: 2005–09
  4. By: James J. Heckman (University of Chicago and IZA Bonn); Salvador Navarro (University of Wisconsin-Madison)
    Abstract: This paper considers semiparametric identiÞcation of structural dynamic discrete choice models and models for dynamic treatment effects. Time to treatment and counterfactual outcomes associated with treatment times are jointly analyzed. We examine the implicit assumptions of the dynamic treatment model using the structural model as a benchmark. For the structural model we show the gains from using cross equation restrictions connecting choices to associated measurements and outcomes. In the dynamic discrete choice model, we identify both subjective and objective outcomes, distinguishing ex post and ex ante outcomes. We show how to identify agent information sets.
    Keywords: dynamic treatment effects, dynamic discrete choice, semiparametric identification
    JEL: C31
    Date: 2005–10

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