Chapter 63 Econometric Tools for Analyzing Market Outcomes

Handbook of Econometrics

Volumn 6, Issue SUPPL. PART A, 2007, Pages 4171-4276

  Ackerberg, Daniel ^a   Lanier Benkard, C ^b   Berry, Steven ^c   Pakes, Ariel ^d  

^a UNIVERSITY OF CALIFORNIA   (United States)

^b STANFORD UNIVERSITY   (United States)

^c YALE UNIVERSITY   (United States)

^d HARVARD UNIVERSITY   (United States)

Author keywords

demand estimation; dynamic estimation; equilibrium outcomes; production function estimation; strategic interactions

Indexed keywords

EID: 66049100200     PISSN: 15734412     EISSN: None     Source Type: Book Series    
DOI: 10.1016/S1573-4412(07)06063-1     Document Type: Review

References (124)

1. Abreu D., Pearce D., and Stacchetti E. Optimal cartel equilibria with imperfect monitoring. Journal of Economic Theory 39 1 (1986) 251-259
2. Ackerberg D. Advertising learning and customer choice in experience good markets: A structural empirical examination. International Economic Review 44 3 (2003) 1007-1040
3. Ackerberg, D., Pakes, A. (2005). "Notes on relaxing the scalar unobservable assumption in Olley and Pakes". Mimeo. Harvard University
4. Ackerberg, D., Caves, K., Fraser, G. (2004). "Structural identification of production functions". Mimeo. UCLA
5. Aguirregabiria V., and Mira P. Sequential estimation of dynamic games. Econometrica 75 1 (2007) 1-54
6. Ahn H., and Powell J. Semiparametric estimation of censored selection models with a nonparametric selection mechanism. Journal of Econometrics 58 1-2 (1993) 3-29
7. Arellano M., and Bond S. Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies 58 (1991) 277-297
8. Arellano M., and Bover O. Another look at the instrumental variable estimation of error-components models. Journal of Econometrics 68 1 (1995) 29-51
9. Bajari P., and Benkard C.L. Demand estimation with heterogeneous consumers and unobserved product characteristics: A hedonic approach. Journal of Political Economy 113 6 (2005) 1239-1276
10. Bajari, P., Benkard, C.L., Levin, J. (2007). "Estimating dynamic models of imperfect competition". Econometrica. In press
11. Benkard C.L. Learning and forgetting: The dynamics of aircraft production. American Economic Review 90 4 (2000) 1034-1054
12. Benkard C.L. A dynamic analysis of the market for wide-bodied commercial aircraft. Review of Economic Studies 71 3 (2004) 581-612
13. Berry S. Estimating discrete choice models of product differentiation. RAND Journal of Economics 25 2 (1994) 242-262
14. Berry, S., Pakes, A. (2002). "Estimation from the optimality conditions for dynamic controls". Mimeo. Yale University
15. Berry, S., Pakes, A. (2005). "The pure characteristics demand model". Mimeo. Yale University
16. Berry S., Levinsohn J., and Pakes A. Automobile prices in market equilibrium. Econometrica 63 4 (1995) 841-890
17. Berry S., Levinsohn J., and Pakes A. Voluntary export restraints on automobiles: Evaluating a trade policy. American Economic Review 89 3 (1999) 400-430
18. Berry S., Levinsohn J., and Pakes A. Estimating differentiated product demand systems from a combination of micro and macro data: The new car model. Journal of Political Economy 112 1 (2004) 68-105
19. Berry S., Linton O., and Pakes A. Limit theorems for estimating the parameters of differentiated product demand systems. Review of Economics Studies 71 3 (2004) 613-654
20. Blundell, R., Bond, S. (1999). "GMM estimation with persistent panel data: An application to production functions". Working Paper Series No. W99/4. The Institute for Fiscal Studies
21. Bond, S., Söderbom, M. (2005). "Adjustment costs and the identification of Cobb Douglas production functions". Institute for Fiscal Studies WP O5/04
22. Bresnahan T. Departures from marginal-cost pricing in the American automobile industry: Estimates for 1977-1978. Journal of Econometrics 17 2 (1981) 201-227
23. Bresnahan T. The oligopoly solution concept is identified. Economics Letters 10 (1982) 87-92
24. Bresnahan T. Competition and collusion in the American automobile industry: The 1955 price war. Journal of Industrial Economics 35 4 (1987) 457-482
25. Buettner, T. (2004a). "Productivity dynamics when labor is a state variable". Mimeo. LSE
26. Buettner, T. (2004b). "R&D and the dynamics of productivity". Mimeo. LSE
27. Caballero R., and Engel E.M.R.A. Explaining investment dynamics in US manufacturing: A generalized (S, s) approach. Econometrica 67 4 (1999) 783-826
28. Chamberlain G. Panel data. In: Arrow K., and Intriligator M. (Eds). Handbook of Econometrics vol. 2 (1984), Elsevier Science 1247-1318 Chapter 22
29. Chan, T. (2002). "Demand for soft drinks: Characteristics, corners and continuous choice". Mimeo. Washington University, Marketing Department
30. Chernozhukov, V., Hong, H., Tamer, E. (2007). "Estimation and confidence regions for parameter sets in economic models". Econometrica. In press
31. Court A. Hedonic price indexes with automotive examples. The Dynamics of Automobile Demand (1939), General Motors Corporation, Detroit 99-117
32. Crawford G., and Shum M. Uncertainty and learning in pharmaceutical demand. Econometrica 73 4 (2007) 1137-1173
33. Das, M., Olley, G.S., Pakes, A. (1996). "The evolution of the market for consumer electronics". Mimeo. Harvard University
34. Davis S., and Haltiwanger J. Gross job creation, gross job destruction, and employment reallocation. Quarterly Journal of Economics 107 2 (1992) 819-864
35. Deaton A., and Muellbauer J. An almost ideal demand system. American Economic Review 70 3 (1980) 312-326
36. Department of Justice. (1992). "US Merger guidelines"
37. Doraszelski, U., Judd, K. (2004). "Solution methods for Markov perfect Nash equilibria of continuous time, finite state stochastic games". Mimeo. Hoover Institution
38. Doraszelski, U., Markovich, S. (2007). "Advertising dynamics and competitive advantage". RAND Journal of Economics. In press
39. Doraszelski, U., Pakes, A. (2007). "A framework for applied dynamic analysis in I.O." In: Armstrong, M., Porter, R. (Eds.), Handbook of Industrial Organization, vol. 3. North-Holland, Amsterdam. In press
40. Doraszelski, U., Satterthwaite, M. (2007). "Foundations of Markov-perfect industry dynamics: Existence, purification, and multiplicity". Mimeo. Hoover Institution
41. Dubin J., and McFadden D. An econometric analysis of residential electric appliance holdings and consumption. Econometrica 52 2 (1984) 345-362
42. Dunne T., Roberts M., and Samuelson L. Patterns of firm entry and exit in US manufacturing industries. RAND Journal of Economics 19 4 (1988) 495-515
43. Dunne, T., Klimek, S., Roberts, M., Xu, Y. (2006). "Entry and exit in geographic markets". Mimeo. Pennsylvania State University
44. Einav, L. (2003). "Not all rivals look alike: Estimating an equilibrium model of the release date timing game". Mimeo. Stanford University
45. Erdem T., and Keane M. Decision-making under uncertainty: Capturing dynamic brand choice processes in turbulent consumer goods markets. Marketing Science 15 1 (1996) 1-20
46. Erdem T., Imai S., and Keane M. Brand and quantity choice dynamics under price uncertainty. Quantitative Marketing and Economics 1 1 (2003) 5-64
47. Ericson R., and Pakes A. Markov-perfect industry dynamics: A framework for empirical work. Review of Economic Studies 62 1 (1995) 53-83
48. Esteban, S., Shum, M. (2002). "Durable good monopoly with secondary markets: The case of automobiles". Mimeo. Johns Hopkins
49. Fershtman C., and Pakes A. A dynamic oligopoly with collusion and price wars. RAND Journal of Economics 31 2 (2000) 207-236
50. Fershtman, C., Pakes, A. (2005). "Finite state dynamic games with asymmetric information: A computational framework". Mimeo. Harvard University
51. Gentzkow, M. (2004). "Valuing new goods in a model with complementarity: Online newspapers". Mimeo. Chicago GSB
52. Gorman W. Separable utility and aggregation. Econometrica 27 (1959) 469-481
53. Gowrisankaran, G. (1995). "A dynamic analysis of mergers". PhD dissertation, Department of Economics, Yale University
54. Gowrisankaran G., and Town R. Dynamic equilibrium in the hospital industry. Journal of Economics and Management Strategy 6 1 (1997) 45-74
55. Green E., and Porter R. Non-cooperative collusion under imperfect price information. Econometrica 52 (1984) 87-100
56. Greenstreet, D. (2005). "Exploiting sequential learning to estimate establishment-level productivity dynamics and decision rules". Mimeo. University of Michigan
57. Griliches Z. Hedonic price indexes for automobiles: An econometric analysis of quality change. The Price Statistics of the Federal Government (1961), NBER, New York
58. Griliches Z., and Hausman J. Errors in variables in panel data. Journal of Econometrics 31 1 (1986) 93-118
59. Gronau R. Wage comparisons - A selectivity bias. Journal of Political Economy 82 6 (1974) 1119-1143
60. Guerre E., Perrigne I., and Vuong Q. Optimal nonparametric estimation of first-price auctions. Econometrica 68 3 (2000) 525-574
61. Hansen L. Large sample properties of generalized method of moments estimators. Econometrica 50 4 (1982) 1029-1054
62. Hausman J. Valuation of new goods under perfect and imperfect competition. In: Bresnahan T., and Gordon R. (Eds). The Economics of New Goods (1996), University of Chicago Press, Chicago 209-248 Chapter 5
63. Heckman J. Shadow prices, market wages, and labor supply. Econometrica 42 4 (1974) 679-694
64. Heckman J. The common structure of statistical models of truncation, sample selection and limited dependent variables and a simple estimator for such models. Annals of Economic and Social Measurement 5 4 (1976) 475-492
65. Heckman J. Dummy endogenous variables in a simultaneous equation system. Econometrica 46 4 (1978) 931-959
66. Heckman J. Sample selection bias as a specification error. Econometrica 47 1 (1979) 153-161
67. Heckman J. The incidental parameters problem and the problem of initial conditions in estimating a discrete time discrete data stochastic process. In: Manski C., and McFadden D. (Eds). Structural Analysis of Discrete Data and Econometric Applications (1981), MIT press Chapter 4
68. Heckman J., and Honoré B. The empirical content of the roy model. Econometrica 58 (1990) 1121-1149
69. Heckman J., and Robb R. Alternative methods for evaluating the impact of interventions: An overview. Journal of Econometrics 30 1-2 (1985) 239-267
70. Heckman J., and Snyder J.M. Linear probability models of the demand for attributes with an empirical application to estimating the preferences of legislators. RAND Journal of Economics 28 (1997) S142-S189
71. Hendel I. Estimating multiple-discrete choice models: An application to computerization returns. Review of Economic Studies 66 2 (1999) 423-446
72. Hendel, I., Nevo, A. (2002). "Sales and consumer inventory". NBER working paper #9048
73. Hoch I. Estimation of production parameters combining time-series and cross-section data. Econometrica 30 1 (1962) 34-53
74. Houthakker H.S. The Pareto distribution and the Cobb-Douglas production function. Review of Economic Studies 23 1 (1955) 27-31
75. Hotelling H. Stability in competition. Economic Journal 39 (1929) 41-57
76. Hotz V., and Miller R. Conditional choice probabilities and the estimation of dynamic models. Review of Economic Studies 60 3 (1993) 497-529
77. Hotz V., Miller R., Sanders S., and Smith J. A simulation estimator for dynamic models of discrete choice. Review of Economic Studies 60 (1994) 397-429
78. Imbens G., and Lancaster T. Combining micro and macro data in microeconometric models. Review of Economic Studies 61 4 (1994) 655-680
79. Jofre-Bonet M., and Pesendorfer M. Estimation of a dynamic auction game. Econometrica 71 5 (2003) 1443-1489
80. Keane M., and Wolpin K. The career decisions of young men. Journal of Political Economy 105 3 (1997) 473-522
81. Lancaster K. Consumer Demand: A New Approach (1971), Columbia University Press, New York
82. Lau L.J. On identifying the degree of competitiveness from industry price and output data. Economics Letters 10 (1982) 93-99
83. Levinsohn J., and Petrin A. Estimating production functions using inputs to control for unobservables. Review of Economic Studies 70 2 (2003) 317-341
84. Magnac T., and Thesmar D. Identifying dynamic discrete decision processes. Econometrica 70 2 (2002) 801-816
85. Manski C., and Lerman S. The estimation of choice probabilities from choice based samples. Econometrica 45 8 (1977) 1977-1988
86. Marschak J., and Andrews W.H. Random simultaneous equations and the theory of production. Econometrica 12 3-4 (1944) 143-205
87. McFadden D. Conditional logit analysis of qualitative choice behavior. In: Zarembka P. (Ed). Frontiers of Econometrics (1974), Academic Press, New York
88. McFadden D. Econometric models of probabilistic choice. In: Manski C., and McFadden D. (Eds). Structural Analysis of Discrete Data with Econometric Applications (1981), MIT Press, Cambridge, MA
89. Mundlak Y. Empirical production function free of management bias. Journal of Farm Economics 43 1 (1961) 44-56
90. Nadiri M.I., and Rosen S. A Disequilibrium Model of Demand for Factors of Production (1974), National Bureau of Economic Research, New York
91. Nevo A. Measuring market power in the ready-to-eat cereal industry. Econometrica 69 2 (2001) 307-342
92. Olley G.S., and Pakes A. The dynamics of productivity in the telecommunications equipment industry. Econometrica 64 6 (1996) 1263-1298
93. Pakes A. Patents as options: Some estimates of the value of holding European patent stocks. Econometrica 54 (1986) 755-784
94. Pakes A. The estimation of dynamic structural models: Problems and prospects, part II. Mixed continuous-discrete control models and market interactions. In: Laffont J.J., and Sims C. (Eds). Advances in Econometrics: Proceedings of the 6th World Congress of the Econometric Society (1994), Cambridge Univ. Press Chapter 5
95. Pakes, A. (1995). "Biases in the CPI". Testimony before the Senate Finance Committee, the United States Congress
96. Pakes, A. (1998). "A framework for dynamic analysis in applied I.O.". NBER discussion paper No. 8024
97. Pakes A. Common sense and simplicity in industrial organization. Review of Industrial Organization 23 (2004) 193-215
98. Pakes A., and Griliches Z. Estimating distributed lags in short panels with an application to the specification of depreciation patterns and capital stock constructs. Review of Economic Studies 51 (1984) 243-262
99. Pakes A., and McGuire P. Computing Markov-perfect Nash equilibria: Numerical implications of a dynamic differentiated product model. RAND Journal of Economics 25 4 (1994) 555-589
100. Pakes A., and McGuire P. Stochastic approximation for dynamic models: Markov perfect equilibrium and the 'Curse' of dimensionality. Econometrica 69 5 (2001) 1261-1281
101. Pakes A., and Olley G.S. A limit theorem for a smooth class of semiparametric estimators. Journal of Econometrics 65 1 (1995) 295-332
102. Pakes A., and Pollard D. Simulation and the asymptotics of optimization estimators. Econometrica 57 5 (1989) 1027-1057
103. Pakes, A., Ostrovsky, M., Berry, S. (2007). "Simple estimators for the parameters of discrete dynamic games (with entry/exit examples)". RAND Journal of Economics. In press
104. Pakes, A., Porter, J., Ho, K., Ishii, J. (2006). "Moment inequalities and their application". Mimeo. Harvard University
105. Pavcnik N. Trade liberalization, exit, and productivity improvements: Evidence from Chilean plants. Review of Economic Studies 69 (2002) 245-276
106. Pesendorfer, M., Schmidt-Dengler, P. (2003). "Identification and estimation of dynamic games". NBER working paper #9726
107. Petrin A. Quantifying the benefits of new products: The case of the minivan. Journal of Political Economy 110 4 (2002) 705-729
108. Robinson P. Root-N-consistent semiparametric regression. Econometrica 56 4 (1988) 931-954
109. Rosenbaum P., and Rubin D. The central role of the propensity score in observational studies for causal effects. Biometrika 70 1 (1983) 41-55
110. Rotemberg J., and Saloner G. A supergame-theoretic model of business cycles and price wars during booms. American Economic Review 76 (1985) 390-407
111. Rubinstein R. Simulation and the Monte Carlo Method (1981), John Wiley and Sons, New York
112. Rust J. Optimal replacement of GMC bus engines. Econometrica 55 (1987) 999-1033
113. Rust J. Structural estimation of Markov decision processes. In: Engle R.F., and McFadden D.L. (Eds). Handbook of Econometrics vol. IV (1994), Elsevier Science, Amsterdam
114. Ryan, S. (2006). "The costs of environmental regulation in a concentrated industry". Mimeo. Duke University
115. Salop S. Monopolistic competition with outside goods. RAND Journal of Economics 10 1 (1979) 141-156
116. Shaked A., and Sutton J. Relaxing price competition through product differentiation. Review of Economic Studies 49 1 (1982) 3-13
117. Schmidt-Dengler, P. (2003). "The timing of new technology adoption: The case of MRI". Mimeo. Yale University
118. Sobel J. The timing of sales. Review of Economic Studies 51 3 (1984) 353-368
119. Song, M. (2004). "Measuring consumer welfare in the CPU market: An application of the pure characteristics demand model". Mimeo. Georgia Tech
120. Timmins C. Measuring the dynamic efficiency costs of regulators' preferences: Municipal water utilities in the arid west. Econometrica 70 2 (2002) 603-629
121. Train K. Discrete Choice Models with Simulation (2003), Cambridge University Press
122. Weintraub, G., Benkard, C.L., Van Roy, B. (2007). "Markov perfect industry dynamics with many firms". Mimeo. Stanford University
123. Wooldridge J. Econometric Analysis of Cross Section and Panel Data (2002), MIT Press, Cambridge, MA
124. Wooldridge, J. (2004). "On estimating firm-level production functions using proxy variables to control for unobservables". Mimeo. Michigan State University