4 papers
Sequential Estimation of Dynamic Discrete Choice Models with Unobserved Heterogeneity
Ertian Chen, Hiroyuki Kasahara, Katsumi Shimotsu
Unobserved heterogeneity is empirically central in dynamic discrete choice models but computationally costly to incorporate: estimation requires repeatedly solving fixed-point equa…
Carbon Regulation and Competition in the European Airline Industry
Ertian Chen, Lichao Chen, Lars Nesheim
The European Union Emissions Trading System is set to substantially increase the effective carbon price faced by airlines. We estimate a two-stage model of airline competition with…
Robust Structural Estimation under Misspecified Latent-State Dynamics
Ertian Chen
Estimation and counterfactual analysis in dynamic structural models rely on assumptions about the dynamic process of latent variables, which may be misspecified. We propose a frame…
Model-Adaptive Approach to Dynamic Discrete Choice Models with Large State Spaces
Ertian Chen
Estimation and counterfactual experiments in dynamic discrete choice models with large state spaces pose computational difficulties. This paper proposes a model-adaptive approach,…