The 2013 Lawrence R. Klein Lecture: Behavioral and Descriptive Forms of Choice Models

22 Pages Posted: 30 Jul 2014

See all articles by Ariel Pakes

Ariel Pakes

National Bureau of Economic Research (NBER); Harvard University - Department of Economics

Date Written: August 2014

Abstract

Empirical work on choice models, especially on relatively new topics or data sets, often starts with descriptive, or what is colloquially referred to as “reduced form,” results. Our descriptive form formalizes this process. It is derived from the underlying behavioral model, has an interpretation in terms of fit, and can sometimes be used to quantify biases in agents' expectations. We consider estimators for the descriptive form of discrete choice models with interacting agents that take account of approximation errors as well as unobservable sources of endogeneity. We conclude with an investigation of descriptive forms for two‐period entry models.

Suggested Citation

Pakes, Ariel, The 2013 Lawrence R. Klein Lecture: Behavioral and Descriptive Forms of Choice Models (August 2014). International Economic Review, Vol. 55, Issue 3, pp. 603-624, 2014. Available at SSRN: https://ssrn.com/abstract=2473861 or http://dx.doi.org/10.1111/iere.12078

Ariel Pakes (Contact Author)

National Bureau of Economic Research (NBER) ( email )

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Harvard University - Department of Economics ( email )

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