nep-dcm 2007-07-27 papers

on Discrete Choice Models

Issue of 2007‒07‒27
one paper chosen by
Philip Yu
Hong Kong University

The Identification and Economic Content of Ordered Choice Models with Stochastic Thresholds By Flavio Cunha; James J. Heckman; Salvador Navarro

The Identification and Economic Content of Ordered Choice Models with Stochastic Thresholds

By:	Flavio Cunha; James J. Heckman; Salvador Navarro
Abstract:	This paper extends the widely used ordered choice model by introducing stochastic thresholds and interval-specific outcomes. The model can be interpreted as a generalization of the GAFT (MPH) framework for discrete duration data that jointly models durations and outcomes associated with different stopping times. We establish conditions for nonparametric identification. We interpret the ordered choice model as a special case of a general discrete choice model and as a special case of a dynamic discrete choice model.
JEL:	C31
Date:	2007–07
URL:	http://d.repec.org/n?u=RePEc:nbr:nberte:0340&r=dcm

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