Estimating dynamic discrete choice models with hyperbolic discounting, with an application to mammography decisions

Description

"The NBER Bulletin on Aging and Health provides summaries of publications like this. You can sign up to receive the NBER Bulletin on Aging and Health by email. 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"--National Bureau of Economic Research web site.

Subjects

Series Statement

• NBER working paper series -- working paper 16438
• Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16438.

Links

• http://www.nber.org/papers/w16438