Haan, Peter; Kemptner, Daniel; Uhlendorff, Arne - 2012
Dynamic discrete choice models usually require a general specification of unobserved heterogeneity. In this paper, we … with a multivariate normal distribution for the unobserved heterogeneity, the Bayesian MCMC estimator yields almost … assumptions which are consistent with economic theory, e.g. log-normally distributed consumption preferences, the Bayesian method …
