THE 2013 LAWRENCE R. KLEIN LECTURE: BEHAVIORAL AND DESCRIPTIVE FORMS OF CHOICE MODELS.

Empirical work on choice models, especially on relatively new topics or data sets, often starts with descriptive, or what is colloquially referred to as 'reduced form,' results. Our descriptive form formalizes this process. It is derived from the underlying behavioral model, has an interpretation in...

Descripción completa

Detalles Bibliográficos
Publicado en:International Economic Review Vol. 55; no. 3; pp. 603 - 625
Autor principal: Pakes, Ariel
Formato: Artículo
Publicado: Wiley-Blackwell Aug2014
Materias:
Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:Empirical work on choice models, especially on relatively new topics or data sets, often starts with descriptive, or what is colloquially referred to as 'reduced form,' results. Our descriptive form formalizes this process. It is derived from the underlying behavioral model, has an interpretation in terms of fit, and can sometimes be used to quantify biases in agents' expectations. We consider estimators for the descriptive form of discrete choice models with interacting agents that take account of approximation errors as well as unobservable sources of endogeneity. We conclude with an investigation of descriptive forms for two-period entry models.