Semiparametric identification and estimation of discrete choice models for bundles

Fu Ouyang, Thomas Tao Yang and Hanghui Zhang

Economics Letters, 2020, vol. 193, issue C

Abstract: We study (point) identification of preference coefficients in semiparametric discrete choice models for bundles. The approach to the identification uses an “identification at infinity” (Chamberlain, 1986) insight in combination with median independence restrictions on unobservables. We propose two-stage maximum score (MS) estimators and show their consistency. Monte Carlo evidence demonstrates that our approach performs satisfactorily in finite samples.

Keywords: Bundle choices; Semiparametric model; Median independence; Identification at infinity; Maximum score estimation (search for similar items in EconPapers)
JEL-codes: C14 C23 C35 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:193:y:2020:i:c:s0165176520302123

DOI: 10.1016/j.econlet.2020.109321

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