Econometric Analysis of Sequential Discrete Choice Models
Duke University Dept. of Economics Working Paper No. 95-55
22 Pages Posted: 28 Jan 1997
Date Written: Undated
Abstract
This paper specifies an estimable dynamic model of sequential discrete choices in a controlled jump-process framework. We study sufficient conditions under which the agent's optimal policy is stationary. We show that the observable event histories at the micro-level are sample paths of a semi-Markovian process. We provide, for the first time, sufficient and necessary conditions under which the destination specific hazard functions belong to the proportional hazard family. Finally, we propose a computing algorithm for statistical inference of the structural parameters from longitudinal survey data.
JEL Classification: C51, C81, J64
Suggested Citation: Suggested Citation