The Identification and Economic Content of Ordered Choice Models with Stochastic Thresholds

This paper extends the widely used ordered choice model by introducing stochastic thresholds and interval-specific outcomes. The model can be interpreted as a generalization of the GAFT (MPH) framework for discrete duration data that jointly models durations and outcomes associated with different stopping times. We establish conditions for nonparametric identification. We interpret the ordered choice model as a special case of a general discrete choice model and as a special case of a dynamic discrete choice model.

[1]  A. Cox.  Optimal Stopping and Applications , 2009 .

[2]  J. Heckman,et al.  Econometric Evaluation of Social Programs, Part III: Distributional Treatment Effects, Dynamic Treatment Effects, Dynamic Discrete Choice, and General Equilibrium Policy Evaluation , 2007 .

[3]  James J. Heckman,et al.  Econometric Evaluation of Social Programs, Part I: Causal Models, Structural Models and Econometric Policy Evaluation , 2007 .

[4]  E. Vytlacil.  Ordered Discrete-Choice Selection Models and Local Average Treatment Effect Assumptions: Equivalence, Nonequivalence, and Representation Results , 2006, The Review of Economics and Statistics.

[5]  James J Heckman,et al.  Understanding Instrumental Variables in Models with Essential Heterogeneity , 2006, The Review of Economics and Statistics.

[6]  A. Vignoles,et al.  What's the Good of Education? , 2005 .

[7]  J. Heckman,et al.  Estimating Distributions of Treatment Effects with an Application to the Returns to Schooling and Measurement of the Effects of Uncertainty on College Choice , 2003, SSRN Electronic Journal.

[8]  J. Heckman,et al.  The Economics and Econometrics of Active Labor Market Programs , 1999 .

[9]  David Card.  The Causal Effect of Education on Learning , 1999 .

[10]  James J. Heckman,et al.  Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts of American Males , 1998, Journal of Political Economy.

[11]  James J. Heckman,et al.  Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts , 1998 .

[12]  Robert A. Pollak,et al.  Simple inference in multinomial and ordered logit , 1998 .

[13]  M. Keane,et al.  The Career Decisions of Young Men , 1997, Journal of Political Economy.

[14]  Rosa L. Matzkin.  Restrictions of economic theory in nonparametric methods , 1994 .

[15]  Rosa L. Matzkin.  Nonparametric and Distribution-Free Estimation of the Binary Threshold Crossing and the Binary Choice Models , 1992 .

[16]  Geert Ridder,et al.  The Non-Parametric Identification of Generalized Accelerated Failure-Time Models , 1990 .

[17]  M. Rothschild,et al.  Stochastic Capital Theory , 1989 .

[18]  C. Manski.  Identification of Binary Response Models , 1988 .

[19]  T. Bresnahan.  Competition and Collusion in the American Automobile Industry: The 1955 Price War , 1987 .

[20]  G. Becker.  Human capital and the personal distribution of income : an analytical approach , 1985 .

[21]  J. Kadane.  Structural Analysis of Discrete Data with Econometric Applications , 1984 .

[22]  M. Feldstein.  Behavioral Simulation Methods in Tax Policy Analysis , 1984 .

[23]  James J. Heckman,et al.  New Methods for Estimating Labor Supply Functions: A Survey , 1982 .

[24]  A. Shaked,et al.  Relaxing price competition through product differentiation , 1982 .

[25]  D. McFadden.  Econometric Models of Probabilistic Choice , 1981 .

[26]  D. McFadden,et al.  Production Economics: A Dual Approach to Theory and Applications (I): The Theory of Production , 1978 .

[27]  E. Prescott,et al.  Sequential location among firms with foresight , 1977 .

[28]  Henri Theil,et al.  Theory and measurement of consumer demand , 1975 .

[29]  J. Heckman.  Effects of Child-Care Programs on Women's Work Effort , 1974, Journal of Political Economy.

[30]  D. McFadden.  Conditional logit analysis of qualitative choice behavior , 1972 .

[31]  M. P. Dumont.  Comment … , 1970 .

[32]  F. Newman.  Lectures On Political Economy , 1851 .