Extensions
We showcase several extensions to the baseline model and its standard analysis.
A central component of dynamic behavioral models are time preferences that characterize the intertemporal decision problem agents face. However, time preference parameters are usually underidentified in structural models which can have far-reaching effects on the counterfactual prediction capacities of a model.
In this lecture, we examine the identification of time preference parameters in a discrete choice dynamic model of occupational choice. We extend the traditional exponential discounting framework by introducing (quasi-)hyperbolic discounting and naïve agents.
… work in progress