Identification, estimation, and inference of the discount factor in dynamic discrete choice models

Research Project

Project/Area Number	24K04814
Research Category	Grant-in-Aid for Scientific Research (C)
Allocation Type	Multi-year Fund
Section	一般
Review Section	Basic Section 07030:Economic statistics-related
Research Institution	The University of Tokyo
Principal Investigator	下津克己東京大学, 大学院経済学研究科(経済学部), 教授 (50547510)
Project Period (FY)	2024-04-01 – 2027-03-31
Project Status	Granted (Fiscal Year 2024)
Budget Amount *help	¥4,550,000 (Direct Cost: ¥3,500,000、Indirect Cost: ¥1,050,000) Fiscal Year 2026: ¥1,300,000 (Direct Cost: ¥1,000,000、Indirect Cost: ¥300,000) Fiscal Year 2025: ¥1,300,000 (Direct Cost: ¥1,000,000、Indirect Cost: ¥300,000) Fiscal Year 2024: ¥1,950,000 (Direct Cost: ¥1,500,000、Indirect Cost: ¥450,000)
Keywords	econometrics
Outline of Research at the Start	Numerous empirical studies have shown that estimating dynamic discrete choice models improves our understanding of individual and firm behavior. In these models, the identification of the discount factor is crucial for evaluating agents' responses to dynamic interventions. This research project develops a method for identifying the discount factor in dynamic discrete choice models.