The Identification of a Mixture of First‐Order Binary Markov Chains* |
| |
| Authors: | Martin Browning Jesus M Carro |
| |
| Institution: | 1. Department of Economics, University of Oxford, (e‐mail: Martin.Browning@economics.ox.ac.uk);2. Departmento de Economia, Universidad Carlos III de Madrid, (e‐mail: jcarro@eco.uc3m.es) |
| |
| Abstract: | Let S be the number of components in a finite discrete mixing distribution. We prove that the number of waves of panel being greater than or equal to 2S is a sufficient condition for global identification of a dynamic binary choice model in which all the parameters are heterogeneous. This model results in a mixture of S binary first‐order Markov Chains. |
| |
| Keywords: | C1 C23 C25 |
|
|
