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Dynamic Discrete Choice and Dynamic Treatment Effects

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  • Heckman, James J.

    ()
    (University of Chicago)

  • Navarro, Salvador

    ()
    (University of Wisconsin-Madison)

Abstract

This paper considers semiparametric identification of structural dynamic discrete choice models and models for dynamic treatment effects. Time to treatment and counterfactual outcomes associated with treatment times are jointly analyzed. We examine the implicit assumptions of the dynamic treatment model using the structural model as a benchmark. For the structural model we show the gains from using cross equation restrictions connecting choices to associated measurements and outcomes. In the dynamic discrete choice model, we identify both subjective and objective outcomes, distinguishing ex post and ex ante outcomes. We show how to identify agent information sets.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1790.

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Length: 96 pages
Date of creation: Oct 2005
Date of revision:
Publication status: published in: Journal of Econometrics, 2007, 136 (2), 341-396
Handle: RePEc:iza:izadps:dp1790

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Keywords: identification; dynamic treatment effects; dynamic discrete choice; semiparametric;

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References

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