Bounds on Parameters in Dynamic Discrete Choice Models∗
نویسندگان
چکیده
Estimation of econometric dynamic random effects panel data models is hampered by the initial conditions problem. This problem is often “solved” by making auxiliary assumptions which are not always consistent with the other maintained econometric assumptions. This paper develops a strategy for avoiding this potential inconsistency. The main idea is to ask which set of parameter values would be consistent with the data and the maintained econometric model. It turns out that this set is not always a singleton, but numerical calculations suggest that the identified set is small in some simple, but interesting cases.
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