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Behavioral Econometrics for Psychologists

  • Andersen, Steffen

    (Department of Economics, Copenhagen Business School)

  • Harrison, Glenn W.

    (Department of Economics, Copenhagen Business School)

  • Lau, Morten Igel

    (Department of Economics, Copenhagen Business School)

  • Rutström, Elisabeth E.

    (Department of Economics, Copenhagen Business School)

We make the case that psychologists should make wider use of structural econometric methods. These methods involve the development of maximum likelihood estimates of models, where the likelihood function is tailored to the structural model. In recent years these models have been developed for a wide range of behavioral models of choice under uncertainty. We explain the components of this methodology, and illustrate with applications to major models from psychology. The goal is to build, and traverse, a constructive bridge between the modeling insights of psychology and the statistical tools of economists.

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File URL: http://openarchive.cbs.dk/cbsweb/handle/10398/7571
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Paper provided by Copenhagen Business School, Department of Economics in its series Working Papers with number 18-2007.

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Length: 49 pages
Date of creation: 01 Jan 2007
Date of revision:
Handle: RePEc:hhs:cbsnow:2007_018
Contact details of provider: Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark
Phone: 38 15 25 75
Fax: 38 15 34 99
Web page: http://www.cbs.dk/departments/econ/
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