Identifying Present-Biased Discount Functions in Dynamic Discrete Choice Models
动态离散选择模型中当下偏误贴现函数的识别
We study the identification of dynamic discrete choice models with sophisticated, quasi-hyperbolic time preferences under exclusion restrictions. We consider both standard finite horizon problems and empirically useful infinite horizon ones, which we prove to always have solutions. We reduce identification to finding the present-bias and standard discount factors that solve a system of polynomial equations with coefficients determined by the data and use this to bound the…