We show that with a simple normalization of explanatory variables, marginal effects in probit and logit models simplify dramatically, becoming a function of only the estimated constant term. Related simplifications hold for computation of asymptotic variances of these effects. D 2003 Elsevier B.V. All rights reserved.

We propose to combine smoothing, simulations and sieve approximations solve for either the integrated or expected value function in a general class of dynamic discrete choice (DDC) models. use importance sampling approximate Bellman operators defining two functions. The random operators, therefore also corresponding solutions, are generally non-smooth which is undesirable. To circumvent this is...

In structural dynamic discrete choice models, unobserved or mis-measured state variables may lead to biased parameter estimates and misleading inference. this paper, we show that instrumental can address such measurement problems when they relate evolve exogenously from the perspective of individual agents (i.e., market-level states). We define a class linear estimators rely on Euler equations ...