RT Monograph
SR 00
A1 Kalouptsidi, Myrto
A1 Scott, Paul
A1 Souza-Rodrigues, Edouardo
T1 Identification of Counterfactuals and Payoffs in Dynamic Discrete Choice with an Application to Land Use
YR 2015
FD 2015-08
VO 15-596
SP 50
K1 Identification
K1 Dynamic Discrete Choice
K1 Counterfactual
K1 Land Use
AB Dynamic discrete choice models are non-parametrically not identified without restrictions on payoff functions, yet counterfactuals may be identified even when payoffs are not. We provide necessary and sufficient conditions for the identification of a wide range of counterfactuals for models with nonparametric payoffs, as well as for commonly used parametric functions, and we obtain both positive and negative results. We show that access to extra data of asset resale prices (when applicable) can solve non-identifiability of both payoffs and counterfactuals. The theoretical findings are illustrated empirically in the context of agricultural land use. First, we provide identification results for models with unobserved market-level state variables. Then, using a unique spatial dataset of land use choices and land resale prices, we estimate the model and investigate two policy counterfactuals: long run land use elasticity (identified) and a fertilizer tax (not identified, affected dramatically by restrictions).
T2 TSE Working Paper
PB TSE Working Paper
PP Toulouse
AV Published
LK https://publications.ut-capitole.fr/id/eprint/18477/
UL http://tse-fr.eu/pub/29623