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

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Year of publication:	2014
Authors:	Eisenhauer, Philipp
Other Persons:	Heckman, James J. (contributor) ; Mosso, Stefano (contributor)
Publisher:	[2014]: [S.l.] : SSRN
Subject:	Diskrete Entscheidung \| Discrete choice \| Momentenmethode \| Method of moments \| Theorie \| Theory \| Maximum-Likelihood-Schätzung \| Maximum likelihood estimation \| Schätzung \| Estimation \| Dynamische Ökonometrie \| Dynamic econometrics \| Bildungsverhalten \| Educational behaviour \| Bildungsertrag \| Returns to education

Extent:	1 Online-Ressource (49 p)
Series:	IZA Discussion Paper ; No. 8548
Type of publication:	Book / Working Paper
Language:	English
Other identifiers:	10.2139/ssrn.2514741 [DOI]
Classification:	C13 - Estimation ; C15 - Statistical Simulation Methods; Monte Carlo Methods ; C35 - Discrete Regression and Qualitative Choice Models ; I21 - Analysis of Education
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013045058