Accession Number:

ADA106193

Title:

A Note on Estimating Continuous Time Decision Models.

Descriptive Note:

Professional Paper,

Corporate Author:

CENTER FOR NAVAL ANALYSES ALEXANDRIA VA INST OF NAVAL STUDIES

Personal Author(s):

Report Date:

1981-09-01

Pagination or Media Count:

22.0

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.

Subject Categories:

  • Psychology
  • Statistics and Probability

Distribution Statement:

APPROVED FOR PUBLIC RELEASE