Behavioral Econometrics for Psychologists

Department of Economics, College of Business Administration, University of Central Florida Working Paper No. 07-04

73 Pages Posted: 1 Oct 2007

See all articles by Steffen Andersen

Steffen Andersen

Copenhagen Business School - Department of Finance; CEPR

Glenn W. Harrison

Georgia State University - J. Mack Robinson College of Business

Morten I. Lau

Durham Business School

E. Elisabet Rutström

University of Central Florida - College of Business Administration

Date Written: September 2007

Abstract

We make the case that psychologists should make wider use of structural econometric methods. These methods involve the development of maximum likelihood estimates of models, where the likelihood function is tailored to the structural model. In recent years these models have been developed for a wide range of behavioral models of choice under uncertainty. We explain the components of this methodology, and illustrate with applications to major models from psychology. The goal is to build, and traverse, a constructive bridge between the modeling insights of psychology and the statistical tools of economists.

Keywords: pscyhology, econometrics, statistics

Suggested Citation

Andersen, Steffen and Harrison, Glenn William and Lau, Morten Igel and Rutstrom, Elisabet, Behavioral Econometrics for Psychologists (September 2007). Department of Economics, College of Business Administration, University of Central Florida Working Paper No. 07-04, Available at SSRN: https://ssrn.com/abstract=1017793 or http://dx.doi.org/10.2139/ssrn.1017793

Steffen Andersen

Copenhagen Business School - Department of Finance ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

CEPR ( email )

London
United Kingdom

Glenn William Harrison

Georgia State University - J. Mack Robinson College of Business ( email )

P.O. Box 4050
Atlanta, GA 30303-3083
United States
407-489-3088 (Phone)
253-830-7636 (Fax)

HOME PAGE: http://www.cear.gsu.edu/

Morten Igel Lau

Durham Business School ( email )

Mill Hill Lane
Durham, DH1 3LB
United Kingdom

Elisabet Rutstrom (Contact Author)

University of Central Florida - College of Business Administration ( email )

PO Box 161400
Orlando, FL 32816
United States

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