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Dynamic Discrete Choice and Dynamic Treatment Effects

James Heckman and Salvador Navarro ()

No 1790, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper considers semiparametric identification of structural dynamic discrete choice models and models for dynamic treatment effects. Time to treatment and counterfactual outcomes associated with treatment times are jointly analyzed. We examine the implicit assumptions of the dynamic treatment model using the structural model as a benchmark. For the structural model we show the gains from using cross equation restrictions connecting choices to associated measurements and outcomes. In the dynamic discrete choice model, we identify both subjective and objective outcomes, distinguishing ex post and ex ante outcomes. We show how to identify agent information sets.

Keywords: identification; dynamic treatment effects; dynamic discrete choice; semiparametric (search for similar items in EconPapers)
JEL-codes: C31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm and nep-ecm
Date: 2005-10
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Published in: Journal of Econometrics, 2007, 136 (2), 341-396

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Journal Article: Dynamic discrete choice and dynamic treatment effects (2007) Downloads
Working Paper: Dynamic Discrete Choice and Dynamic Treatment Effects (2005) Downloads
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