Handbook of Labor Economics, Vol. 4, No. Suppl PA, 2011

ISSN: 1573-4463

doi: 10.1016/S0169-7218(11)00410-2

Chapter 4The Structural Estimation of Behavioral Models: Discrete Choice Dynamic Programming Methods and Applications

Michael P. Keane*, Petra E. Todd**, Kenneth I. Wolpin**

* University of Technology, Sydney and Arizona State University

** University of Pennsylvania


The purpose of this chapter is twofold: (1) to provide an accessible introduction to the methods of structural estimation of discrete choice dynamic programming (DCDP) models and (2) to survey the contributions of applications of these methods to substantive and policy issues in labor economics. The first part of the chapter describes solution and estimation ...

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