A Note on Estimating Continuous Time Decision Models.
Abstract
In this paper we point out a potential source of bias in the estimation of continuous time decision equations. This bias will exist whenever there are censored observations in the data and estimation techniques such as least squares are used. To correct for this bias one has to use an estimation technique, such as the Cox regression model, which takes censored observations into account. We demonstrate the usefulness of the Cox model by estimating an unemployment duration equation and a childspacing equation. We think that the Cox model performs adequately and yields reasonable estimates.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1981
- Accession Number
- ADA106193
Entities
People
- Edward Berger
- Philip Lurie
- R. P. Trost
Organizations
- Center for Naval Analyses