Estimation of Dynamic Discrete Choice Models by Maximum Likelihood and the Simulated Method of Moments
We compare the performance of maximum likelihood (ML) and simulated method of moments (SMM) estimation for dynamic discrete choice models. We construct and estimate a simplified dynamic structural model of education that captures some basic features of educational choices in the United States in the 1980s and early 1990s. We use estimates from our model to simulate a synthetic dataset and assess the ability of ML and SMM to recover the model parameters on this sample. We investigate the performance of alternative tuning parameters for SMM.
Year of publication: |
2014-10
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Authors: | Eisenhauer, Phillipp ; Heckman, James J. ; Mosso, Stefano |
Institutions: | National Bureau of Economic Research (NBER) |
Saved in:
Online Resource
Extent: | application/pdf |
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Series: | |
Type of publication: | Book / Working Paper |
Notes: | ED TWP The price is Paper copy available by mail Number 20622 |
Classification: | C13 - Estimation ; C15 - Statistical Simulation Methods; Monte Carlo Methods ; C35 - Discrete Regression and Qualitative Choice Models ; I21 - Analysis of Education |
Source: |
Persistent link: https://www.econbiz.de/10010951297