We present a new approach to the estimation of production functions that allows for richer patterns of firm heterogeneity than can be accommodated under the proxy variable methods of Olley and Pakes (1996) and Levinsohn and Petrin (2003). In particular, we show that the economics of the firms static input choice contains the necessary identifying information to control for the endogeneity probl...

Neotropical Rhagoletis species are arranged in four groups: nova,psalida,striatella and ferruginea, which include 18 species. On both sides of the Andes, the evolution of morphological differences among these groups has been suggested to be related to the Andes uplift process. In order to test this hypothesis, a phylogenetic analysis of morphological and molecular data was performed. The result...

Schottenfeld RS, Chawarski MC, Pakes JR, et al. Methadone versus buprenorphine with contingency management or performance feedback for cocaine and opioid dependence. Am J Pyschiatry 2005;162:340–8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

Discrete-time stochastic games with a finite number of states have been widely applied to study the strategic interactions among forward-looking players in dynamic environments. The model as written down by Ericson & Pakes (1995), Pakes & McGuire (1994, 2001) (hereafter, EP, PM1, and PM2), the subsequent literature (e.g., Gowrisankaran 1999, Fershtman & Pakes 2000, Benkard 2004), and in standar...

This note argues about a central analytical inconsistency of Ericson and Pakes (1995). Notwithstanding the explicit claims of the article, the formal hypotheses employed there imply that a firm’s investments do not affect both the evolution of this firm and the dynamics of the whole industry. JEL Classification Numbers: C62, D57, E13, L11.

The recently introduced concept of oblivious equilibrium aims at approximating Markov-Perfect Nash Equilibria (MPNE) when its calculation is computationally prohibitive in Ericson-Pakes-style games with many players. This paper examines and extends the oblivious equilibrium concept to dynamic discrete choice games. We consider a set of assumptions commonly posed in the applied dynamic games lit...