Estimation of dynastic lifecycle discrete choice models

Name: Estimation of dynastic lifecycle discrete choice models
Author: Gayle, G. - L., Golan, L., Soytaş, Mehmet Ali

İsim	Estimation of dynastic lifecycle discrete choice models
Yazar	Gayle, G. - L., Golan, L., Soytaş, Mehmet Ali
Basım Tarihi:	2018-11
Basım Yeri	- Wiley
Konu	Discrete choice models, Dynastic models, Intergenerational mobility, Nature versus nurture
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	1759-7323
Kayıt Numarası	830b8ff7-148e-495c-9c66-bafd95e11226
Lokasyon	Economics
Tarih	2018-11
Örnek Metin	This paper explores the estimation of a class of life‐cycle discrete choice dynastic models. It provides a new representation of the value function for these class of models. It compare a multistage conditional choice probability (CCP) estimator based on the new value function representation with a modified version of the full solution maximum likelihood estimator (MLE) in a Monte Carlo study. The modified CCP estimator performs comparably to the MLE in a finite sample but greatly reduces the computational cost. Using the proposed estimator, we estimate a dynastic model and use the estimated model to conduct counterfactual simulations to investigate the role Nature versus Nurture in intergenerational mobility. We find that Nature accounts for 20 percent of the observed intergenerational immobility at the bottom of income distribution. That means that 80 percent of mobility at the bottom of the income distribution is explained by economic decision and economic/institutional constraints.
DOI	10.3982/QE771
Cilt	9

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Estimation of dynastic lifecycle discrete choice models

Yazar Gayle, G. - L., Golan, L., Soytaş, Mehmet Ali

Basım Tarihi 2018-11

Basım Yeri - Wiley

Konu Discrete choice models, Dynastic models, Intergenerational mobility, Nature versus nurture

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 1759-7323

Kayıt Numarası 830b8ff7-148e-495c-9c66-bafd95e11226

Lokasyon Economics

Tarih 2018-11

Örnek Metin This paper explores the estimation of a class of life‐cycle discrete choice dynastic models. It provides a new representation of the value function for these class of models. It compare a multistage conditional choice probability (CCP) estimator based on the new value function representation with a modified version of the full solution maximum likelihood estimator (MLE) in a Monte Carlo study. The modified CCP estimator performs comparably to the MLE in a finite sample but greatly reduces the computational cost. Using the proposed estimator, we estimate a dynastic model and use the estimated model to conduct counterfactual simulations to investigate the role Nature versus Nurture in intergenerational mobility. We find that Nature accounts for 20 percent of the observed intergenerational immobility at the bottom of income distribution. That means that 80 percent of mobility at the bottom of the income distribution is explained by economic decision and economic/institutional constraints.

DOI 10.3982/QE771

Cilt 9