Heterogeneity and Microeconometrics Modelling
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Heterogeneity and Microeconometrics Modelling. / Browning, Martin; Carro, Jesus.
Cph. : Department of Economics, University of Copenhagen, 2006.Research output: Working paper › Research
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TY - UNPB
T1 - Heterogeneity and Microeconometrics Modelling
AU - Browning, Martin
AU - Carro, Jesus
N1 - JEL-classification: C30, C33, C51
PY - 2006
Y1 - 2006
N2 - Presented at the 2005 Econometric Society World Congress Plenary Session on "Modelling Heterogeneity". We survey the treatment of heterogeneity in applied microeconometrics analyses. There are three themes. First, there is usually much more heterogeneity than empirical researchers allow for. Second, the inappropriate treatment of heterogeneity can lead to serious error when estimating outcomes of interest. Finally, once we move away from the traditional linear model with a single 'fixed effect', it is very difficult to account for heterogeneity and fit the data and maintain coherence with theory structures. The latter task is one for economists: "heterogeneity is too important to be left to the statisticians". The paper concludes with a report of our own research on dynamic discrete choice models that allow for maximal heterogeneity
AB - Presented at the 2005 Econometric Society World Congress Plenary Session on "Modelling Heterogeneity". We survey the treatment of heterogeneity in applied microeconometrics analyses. There are three themes. First, there is usually much more heterogeneity than empirical researchers allow for. Second, the inappropriate treatment of heterogeneity can lead to serious error when estimating outcomes of interest. Finally, once we move away from the traditional linear model with a single 'fixed effect', it is very difficult to account for heterogeneity and fit the data and maintain coherence with theory structures. The latter task is one for economists: "heterogeneity is too important to be left to the statisticians". The paper concludes with a report of our own research on dynamic discrete choice models that allow for maximal heterogeneity
KW - Faculty of Social Sciences
KW - heterogeneity
KW - applied microeconometrics
KW - fixed effects
KW - dyanamic discrete choice
M3 - Working paper
BT - Heterogeneity and Microeconometrics Modelling
PB - Department of Economics, University of Copenhagen
CY - Cph.
ER -
ID: 312988