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Structural Estimation and Policy Evaluation in Developing Countries

Author

Listed:
  • Petra E. Todd
  • Kenneth I. Wolpin

    (Department of Economics, University of Pennsylvania, Philadelphia, Pennsylvania 19104)

Abstract

This review discusses the use of discrete choice dynamic programming (DCDP) methods for evaluating policies of particular relevance to developing countries, such as policies to reduce child labor and increase school attendance, improve school quality, affect immigration flows, expand old-age pension benefits, or foster small-business investment through microfinance. We describe the DCDP framework and how it relates to static models, illustrate its application with an example related to conditional cash transfer programs, consider numerous empirical applications from the literature of how the DCDP methodology has been used to address substantively important policy issues, and discuss methods for model validation.

Suggested Citation

  • Petra E. Todd & Kenneth I. Wolpin, 2010. "Structural Estimation and Policy Evaluation in Developing Countries," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 21-50, September.
    • Handle: RePEc:anr:reveco:v:2:y:2010:p:21-50
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    File URL: http://www.annualreviews.org/doi/abs/10.1146/annurev.economics.102308.124345
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    Cited by:

    1. Cavanagh,Jack & Fliegner,Jasmin Claire & Kopper,Sarah & Sautmann,Anja, 2023. "A Metadata Schema for Data from Experiments in the Social Sciences," Policy Research Working Paper Series 10296, The World Bank.
    2. Etienne Wasmer, 2012. "Ex-ante and ex-post evaluation of the 1989 French welfare reform using a natural experiment : the 1908 social laws in Alsace-Moselle," 2012 Meeting Papers 478, Society for Economic Dynamics.
    3. repec:spo:wpmain:info:hdl:2441/5l6uh8ogmqildh09h48202h1n is not listed on IDEAS
    4. Rohman, Ibrahim Kholilul & Bohlin, Erik, 2013. "Impact of broadband speed on household income: Comparing OECD and BIC," 24th European Regional ITS Conference, Florence 2013 88531, International Telecommunications Society (ITS).
    5. Hugo Reis, 2020. "Girls' Schooling Choices And Home Production: Evidence From Pakistan," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(2), pages 783-819, May.
    6. Yu Zheng & Juan Pantano, 2012. "Using Subjective Expectations Data to Allow for Unobserved Heterogeneity in Hotz-Miller Estimation Strategies," 2012 Meeting Papers 940, Society for Economic Dynamics.
    7. Jaworski, Taylor, 2020. "Specification and structure in economic history," Explorations in Economic History, Elsevier, vol. 77(C).
    8. Italo Lopez Garcia, 2015. "Human Capital and Labor Informality in Chile A Life-Cycle Approach," Working Papers WR-1087, RAND Corporation.
    9. repec:hal:journl:hal-03234843 is not listed on IDEAS
    10. Rojas Valdes, Ruben I. & Lin Lawell, C.-Y. Cynthia & Taylor, J. Edward, "undated". "The Dynamic Migration Game: A Structural Econometric Model and Application to Rural Mexico," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259184, Agricultural and Applied Economics Association.
    11. Sebastian Galiani & Juan Pantano, 2021. "Structural Models: Inception and Frontier," NBER Working Papers 28698, National Bureau of Economic Research, Inc.
    12. Gábor Békés & Gianmarco I. P. Ottaviano, 2025. "Cultural Homophily and Collaboration in Superstar Teams," Management Science, INFORMS, vol. 71(10), pages 8149-8168, October.
    13. McKenzie, David, 2011. "How can we learn whether firm policies are working in africa ? challenges (and solutions?) for experiments and structural models," Policy Research Working Paper Series 5632, The World Bank.

    More about this item

    Keywords

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    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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