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

37 Pages Posted: 13 Dec 2007

See all articles by Flavio Cunha

Flavio Cunha

University of Pennsylvania - Department of Economics

James J. Heckman

University of Chicago - Department of Economics; National Bureau of Economic Research (NBER); American Bar Foundation; Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute)

Salvador Navarro

University of Western Ontario - Department of Economics

Multiple version iconThere are 3 versions of this paper

Abstract

This article 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.

Suggested Citation

Cunha, Flavio and Heckman, James J. and Navarro, Salvador, The Identification and Economic Content of Ordered Choice Models with Stochastic Thresholds. International Economic Review, Vol. 48, Issue 4, pp. 1273-1309, November 2007. Available at SSRN: https://ssrn.com/abstract=1071231 or http://dx.doi.org/10.1111/j.1468-2354.2007.00462.x

Flavio Cunha (Contact Author)

University of Pennsylvania - Department of Economics ( email )

3718 Locust Walk
Room 527
Philadelphia, PA 19104
United States
215-898-5652 (Phone)

James J. Heckman

University of Chicago - Department of Economics ( email )

1126 East 59th Street
Chicago, IL 60637
United States
773-702-0634 (Phone)
773-702-8490 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

American Bar Foundation

750 N. Lake Shore Drive
Chicago, IL 60611
United States

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Salvador Navarro

University of Western Ontario - Department of Economics ( email )

Department of Economics
Social Science Centre
London, Ontario N6A 5B8
Canada
519-661-2111 ext 81586 (Phone)
519-661-3666 (Fax)

HOME PAGE: http://sites.google.com/site/econsalvador

Register to save articles to
your library

Register

Paper statistics

Downloads
22
Abstract Views
442
PlumX Metrics