CANCELLED LECTURE: Life-cycle versions of Rust's model
I originally planned to cover Aguirregabiria and Mira's survey paper, but will skip it due to lack of time. But the paper is really a snack, so I leave the material here for (voluntary) self.study for the interested reader. The paper review the content of the many different assumptions that has been made in the literature of dynamic discrete choice models and their consequences for computation, identification, estimation. The slide deck is a condensedversion of selected parts of the survey that cover various empirical applications of discrete choice models, but specifically focus two specific life-cycle models in detail:
Application 1: Optimal Retirement in Sweeden (Karlström, JAE 2004)
Application 2: Occupational choice and human capital investmenst (Keane and Wolpin, JPE 1997)
Preparation:
Material: