Estimating Dynamic Discrete Choice Models with Hyperbolic Discounting, with an Application to Mammography Decisions

TitleEstimating Dynamic Discrete Choice Models with Hyperbolic Discounting, with an Application to Mammography Decisions
Publication TypeReport
Year of Publication2010
AuthorsFang, H, Wang, Y
KeywordsHealth Conditions and Status, Methodology
Abstract

We extend the semi-parametric estimation method for dynamic discrete choice models using Hotz and Miller's (1993) conditional choice probability (CCP) approach to the setting where individuals may have hyperbolic discounting time preferences and may be naive about their time inconsistency. We illustrate the proposed estimation method with an empirical application of adult women's decisions to undertake mammography to evaluate the importance of present bias and naivety in the under-utilization of this preventive health care. Our results show evidence for both present bias and naivety.

URLhttp://www.econ.upenn.edu/ hfang/WorkingPaper/wang/w16438.pdf
Endnote Keywords

methodology/semi-parametric estimation/conditional choice probablilty/Mammography

Endnote ID

25670

Citation Key5820