This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

How Do Behavioral Assumptions Affect Structural Inference? Evidence From A Laboratory Experiment

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Daniel Houser ()
Joachim Winter (Mannheim Research Institute for the Economics of Aging (MEA))

Additional information is available for the following registered author(s):

Abstract

We use a laboratory experiment to investigate the effect that assuming rational expectations has on structural inference in a dynamic discrete choice decision problem. Our experimental design induces preferences up to each subject’s subjective rates of time preference, leaving unrestricted only this parameter and the decision rule that the subject uses in solving the problem. We analyze the data under the assumption that all subjects use the rational expectations decision rule, and also under weaker behavioral assumptions that allow for heterogeneity in the way people form decisions. We find no evidence that assuming rational expectations distorts inferences about the cross-sectional distribution of discount rates.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.mea.uni-mannheim.de/mea_neu/pages/files/nopage_pubs/dp05.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Mannheim Research Institute for the Economics of Aging, University of Mannheim in its series MEA discussion paper series with number 02005.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length:
Date of creation: 16 Jan 2002
Date of revision:
Handle: RePEc:xrs:meawpa:02005

Contact details of provider:
Web page: http://www.mea.uni-mannheim.de/

For technical questions regarding this item, or to correct its listing, contact: (Christoph Huber).

Related research
Keywords:

Other versions of this item:

Find related papers by JEL classification:
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
D90 - Microeconomics - - Intertemporal Choice and Growth - - - General
C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Statistical Decision Theory; Operations Research

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Anderlini, Luca & Canning, David, 2001. "Structural Stability Implies Robustness to Bounded Rationality," Journal of Economic Theory, Elsevier, vol. 101(2), pages 395-422, December. [Downloadable!] (restricted)
  2. Houser, Daniel, 2003. "Bayesian analysis of a dynamic stochastic model of labor supply and saving," Journal of Econometrics, Elsevier, vol. 113(2), pages 289-335, April. [Downloadable!] (restricted)
  3. Pierre-Olivier Gourinchas & Jonathan A. Parker, 1999. "Consumption Over the Life Cycle," NBER Working Papers 7271, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Ellison, Glenn & Fudenberg, Drew, 1993. "Rules of Thumb for Social Learning," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 612-43, August. [Downloadable!] (restricted)
    Other versions:
  5. Hey, John D., 1987. "Still searching," Journal of Economic Behavior & Organization, Elsevier, vol. 8(1), pages 137-144, March. [Downloadable!] (restricted)
  6. John T. Warner & Saul Pleeter, 2001. "The Personal Discount Rate: Evidence from Military Downsizing Programs," American Economic Review, American Economic Association, vol. 91(1), pages 33-53, March. [Downloadable!] (restricted)
  7. Samwick, Andrew A., 1998. "Discount rate heterogeneity and social security reform," Journal of Development Economics, Elsevier, vol. 57(1), pages 117-146, October. [Downloadable!] (restricted)
    Other versions:
  8. Hey, John D., 1982. "Search for rules for search," Journal of Economic Behavior & Organization, Elsevier, vol. 3(1), pages 65-81, March. [Downloadable!] (restricted)
  9. Cox, James C & Oaxaca, Ronald L, 1999. "Can Supply and Demand Parameters Be Recovered from Data Generated by Market Institutions?," Journal of Business & Economic Statistics, American Statistical Association, vol. 17(3), pages 285-97, July.
  10. Martin Lettau & Harald Uhlig, 1999. "Rules of Thumb versus Dynamic Programming," American Economic Review, American Economic Association, vol. 89(1), pages 148-174, March. [Downloadable!] (restricted)
  11. Krusell, Per & Smith, Anthony Jr., 1996. "Rules of thumb in macroeconomic equilibrium A quantitative analysis," Journal of Economic Dynamics and Control, Elsevier, vol. 20(4), pages 527-558, April. [Downloadable!] (restricted)
  12. Hotz, V Joseph & Miller, Robert A, 1988. "An Empirical Analysis of Life Cycle Fertility and Female Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 91-118, January. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Schunk, Daniel & Winter, Joachim, 2004. "The Relationship Between Risk Attitudes and Heuristics in Search Tasks: A Laboratory Experiment," Sonderforschungsbereich 504 Publications 04-23, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim. [Downloadable!]
    Other versions:
  2. Daniel Houser & Kevin McCabe & Michael Keane & Antoine Bechara, 2003. "Heuristics Used By Humans With Prefrontal Cortex Damage: Toward An Empirical Model Of Phineas Gage," Experimental 0308002, EconWPA. [Downloadable!]
  3. Daniel Houser & Robert Kurzban, 2003. "Conditional cooperation and group dynamics: Experimental evidence from a sequential public goods game," Experimental 0307001, EconWPA, revised 21 Jan 2005. [Downloadable!]
  4. Daniel Houser & Michael Keane & Kevin McCabe, 2002. "Behavior in a dynamic decision problem: An analysis of experimental evidence using a bayesian type classification algorithm," Experimental 0211001, EconWPA. [Downloadable!]
    Other versions:
  5. Rothlauf, Franz & Schunk, Daniel & Pfeiffer, Jella, 2005. "Classification of Human Decision Behavior: Finding," Sonderforschungsbereich 504 Publications 05-04, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim. [Downloadable!]
  6. Franz Rothlauf & Daniel Schunk & Jella Pfeiffer, 2005. "Classification of Human Decision Behavior: Finding Modular Decision Rules with Genetic Algorithms," MEA discussion paper series 05079, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
    Other versions:
Statistics
Access and download statistics

Did you know? All the bibliographic data shown here has been contributed by volunteers, thereby helping to keep this service free.

This page was last updated on 2008-8-16.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.