Modelling Individual Choice: The Econometrics of Corners, Kinks, and Holes

Abstract

The Econometrics of Individual Behaviour Part 1 The Theory of Rational Choice: Choice Sets, Preferences and Utility Functions The Opportunity Set Direct Utility and the Interior Optimum Indirect Utility and Roy's Identity The Cost Function and Shephard's Lemma The Distance Function Variation in Preferences.Part 2 Survey Methods and Cross-Section Econometrics: Sampling Techniques The Survey enquiry An Example - the UK Family Expenditure Survey Estimation Under Exogenous Sampling Estimation Under Endogenous Sampling Non-Response and Extraneous Sample Selection. Part 3 Choice Among Discrete Alternatives: Applications of Discrete Choice Models Estimation and Testing Random Parameter Models Alternative-Specific Random Errors Tversky's Elimination Model Hierarchical and Sequential Discrete Choice Composite Discrete-Continuous Choice. Part 4 Zero Expenditures and Corner Solutions: Single Equation Censored Regression (Tobit) Models Systems of Censored Regression equations Corner Solutions Consumption and Purchases - the P-Tobit Model Partially-Observed Explanatory Variables. Part 5 Kinked and Discontinuous Budget Frontiers Some Examples Models with Deterministic Preferences Models with Random Preferences More on Stochastic Specification. Part 6 Sequential Choice in Continuous Time - Duration Models The Hazard Function Applications of Duration Models Extensions Parametric Estimation Semi-Parametric Methods. Part 7 Barriers to Choice: Point Rationing Bounds on Behaviour Discrete Opportunities. Appendices: logistic, extreme value and generalised value distributions truncated and censored distributions the computation of probability integrals.