Estimation of Dynamic Discrete Choice Models by Maximum Likelihood and the Simulated Method of Moments
Philipp Eisenhauer (),
James Heckman and
Stefano Mosso ()
Additional contact information
Philipp Eisenhauer: University of Chicago
Stefano Mosso: University of Chicago
No 8548, IZA Discussion Papers from Institute of Labor Economics (IZA)
We compare the performance of maximum likelihood (ML) and simulated method of moments (SMM) estimation for dynamic discrete choice models. We construct and estimate a simplified dynamic structural model of education that captures some basic features of educational choices in the United States in the 1980s and early 1990s. We use estimates from our model to simulate a synthetic dataset and assess the ability of ML and SMM to recover the model parameters on this sample. We investigate the performance of alternative tuning parameters for SMM.
Keywords: returns to education; dynamic discrete choice; simulation-based estimation (search for similar items in EconPapers)
JEL-codes: C13 C15 C35 I21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm and nep-ecm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Journal Article: ESTIMATION OF DYNAMIC DISCRETE CHOICE MODELS BY MAXIMUM LIKELIHOOD AND THE SIMULATED METHOD OF MOMENTS (2015)
Working Paper: Estimation of Dynamic Discrete Choice Models by Maximum Likelihood and the Simulated Method of Moments (2014)
Working Paper: Estimation of dynamic discrete choice models by maximum likelihood and the simulated method of moments (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp8548
Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Access Statistics for this paper
More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().