Discrete time duration models with group-level heterogeneity

摘要

Dynamic discrete choice panel data models have received a great deal of attention. In those! models, the dynamics is usually handled by including the lagged outcome as an explanatory variable, n this paper we consider an alternative model in which thedynamics is handled by using the duration in the current state as a covariate. We propose estimators that allow for group-specific effect in parametric and semiparametric versions of the model. The proposed method is illustrated by aal empirical analysis of job durations allowing for firm-level effects.