Simulation methods

Notes

Topics Discussed in Class

• Basic Methods.

• Extensions.

• Applications.

Readings Discussed in Class

• • Berry, S. (1992). "Estimation of a Model of Entry in the Airline Industry." Econometrica. 889-917.

  • Berry, S., J. Levinsohn, and A. Pakes (1995). "Automobile Prices in Market Equilibrium." Econometrica. 841-890.

  • Pakes, A. (1986). "Patents as Options: Some Estimates of the Value of Holding European Patent Stocks." Econometrica. 755-784.

  • Stern, S. (1997). "Simulation Based Estimation." Journal of Economic Literature.

Homework

Other readings

• Berkovec, J. and S. Stern (1991). "Job Exit Behavior of Older Men." Econometrica. 189-210.

• McFadden, D. (1989). "A Method of Simulated Moments for Estimation of Discrete Response Models without Numerical Integration." Econometrica. 995-1026.

Importance Simulator