A Comment on "Estimating Dynamic Discrete Choice Models with Hyperbolic Discounting" by Hanming Fang and Yang Wang

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Tác giả: Jaap H Abbring, Øystein Daljord

Ngôn ngữ: eng

Ký hiệu phân loại: 003.56 Decision theory

Thông tin xuất bản: 2019

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Bộ sưu tập: Metadata

ID: 162912

 Comment: 11 pages, version submitted to the International Econonomic Review on May 24The recent literature often cites Fang and Wang (2015) for analyzing the identification of time preferences in dynamic discrete choice under exclusion restrictions (e.g. Yao et al., 2012
  Lee, 2013
  Ching et al., 2013
  Norets and Tang, 2014
  Dub\'e et al., 2014
  Gordon and Sun, 2015
  Bajari et al., 2016
  Chan, 2017
  Gayle et al., 2018). Fang and Wang's Proposition 2 claims generic identification of a dynamic discrete choice model with hyperbolic discounting. This claim uses a definition of "generic" that does not preclude the possibility that a generically identified model is nowhere identified. To illustrate this point, we provide two simple examples of models that are generically identified in Fang and Wang's sense, but that are, respectively, everywhere and nowhere identified. We conclude that Proposition 2 is void: It has no implications for identification of the dynamic discrete choice model. We show that its proof is incorrect and incomplete and suggest alternative approaches to identification.
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