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Microeconometrics

Dynamic Structural Models for Policy Evaluation

Methods and applications of dynamic discrete choice structural models in Economics

17.5h (5 days)

€775 - €1,375

Face to Face

English

Program date: June 30 - July 4, 2025

Early bird deadline: April 15, 2025

Learn more

Dynamic Structural Models for Policy Evaluation

Applications for 2025 Summer School programs are now open!

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Summer school

Microeconometrics

Dynamic Structural Models for Policy Evaluation

The course focuses on estimating dynamic discrete choice structural models for forward-looking agents making discrete decisions. It is organized into three blocks:

Introduction and Estimation Techniques.
Conditional Choice Probability Methods.
Dynamic Game Theory.

Teaching Faculty

Many economic decisions are dynamic; learn to understand and evaluate the policies affecting them.

Participants of the course will:

Grasp the principles and applications of dynamic discrete choice models in Economics.
Master estimation techniques using Maximum Likelihood and Conditional Choice Probability methods.
Connect economic theory with empirical data and make inferences about model predictions.
Understand the complexities of dynamic problems involving game theoretical responses.
Gain hands-on experience in the programming of solution and estimation of dynamic discrete choice structural models using the MATA facility of STATA.
Gain tools to enable you to solve complex models, simulate policy outcomes and perform computational analysis at a high level.

Program Syllabus for Dynamic Structural Models for Policy Evaluation

Here is a list of topics you will cover during the course:

Full solution Maximum Likelihood approaches

Introduction.
Basic framework: conditional independence.
Motivational example: Rust’s engine replacement model.
Estimation using full solution techniques.
Extensions: unobserved heterogeneity and equilibrium.

Conditional Choice Probability (CCP) estimation

Conditional value function representation.
Finite dependence.
Estimation methods.
Aguirregabiria and Mira’s iterative approach.
Extensions: unobserved heterogeneity and equilibrium.

An Introduction to Dynamic Discrete Games

List of References

The following texts will help you prepare for the course:

Recommended texts

Adda, J. and R. W. Cooper (2003), Dynamic Economics: Quantitative Methods and Applications. The MIT Press.
Altug, S. and R. A. Miller (1998), “The Effect of Work Experience on Female Wages and Labor Supply”, Review of Economic Studies, 65, 45-85.
Aguirregabiria, V. and P. Mira (2002), “Swapping the Nested Fixed Point Algorithm: A Class of Estimators for Discrete Markov Decision Models”, Econometrica, 70, 1519-1543.
Aguirregabiria, V. and P. Mira (2007), “Sequential Estimation of Dynamic Discrete Games”, Econometrica, 75, 1-53.
Aguirregabiria, V. and P. Mira (2010), “Dynamic Discrete Choice Structural Models: A Survey”, Journal of Econometrics, 156: 38-67
Arcidiacono, P. and P. B. Ellickson (2011), “Practical Methods for Estimation of Dynamic Discrete Choice Models”, Annual Review of Economics, 3, 363-394.
Arcidiacono, P. and R. A. Miller (2011), “Conditional Choice Probability Estimation of Dynamic Discrete Choice Models with Unobserved Heterogeneity”, Econometrica, 79, 1823-1867.
Berndt, E. K., B. H. Hall, R. E. Hall, J. A. Hausman (1974). “Estimation and Inference in Nonlinear Structural Models”, Annals of Economic and Social Measurement 3, 653-665.
Eckstein, Z. and K. Wolpin (1989), “The Specification and Estimation of Dynamic Stochastic Discrete Choice Models: A Survey”, Journal of Human Resources, 24: 562-598
Hong, H. and M. Shum (1998), “Structural Estimation of Auction Models”, In: Patrone F., García-Jurado I., Tijs S. (eds) Game Practice: Contributions from
Applied Game Theory. Theory and Decision Library (Series C: Game Theory, Mathematical Programming and Operations Research), vol 23. Springer, Boston, MA.
Hotz, V. J. and R. A. Miller (1993), “Conditional Choice Probabilities and the Estimation of Dynamic Structural Models”, Review of Economic Studies, 60, 497-529.
Keane, M. P. and K. I. Wolpin (1997), “The Career Decisions of Young Men”, Journal of Political Economy, 105, 473-522.
Lee, D. and K. I. Wolpin (2006), “Intersectoral Labor Mobility and the Growth of the Service Sector”, Econometrica, 74, 1-46.
Llull, J. (2018), “Immigration, Wages, and Education: A Labor Market Equilibrium Structural Model”, Review of Economic Studies, 85, 1852-1896.
Llull, J. (2018), “Selective Immigration Policies and the U.S. Labor Market”, mimeo, MOVE, Universitat Autònoma de Barcelona, and BSE.
Miller, R. A. (1997), “Estimating models of dynamic optimization with microeconomic data”, in M. Pesaran and P. Schmidt (eds.), Handbook of Applied Econometrics, Vol. 2, pp. 246-299
Todd, P. and K. Wolpin (2006), “Assessing the Impact of School Subsidy Program in Mexico: Using a Social Experiment to Validate a Dynamic Behavioral Model of Child Schooling and Fertility”, American Economic Review, 96, 1384-1417.
Rust, J. (1987), “Optimal Replacement of GMC Bus Engines: An Empirical Model of Harold Zurcher”, Econometrica, 55, 999-1033.
Rust, J. (1994), “Structural Estimation of Markov Decision Processes”, in R. E. Engle and D. L. McFadden (eds.), Handbook of Econometrics, Vol. 4, Ch. 51.

Software / Hardware

Participants must bring their own portable laptop to participate fully in this course.
STATA (MATA).

Why join our Summer School?

All BSE Summer courses are taught to the same high standard as our Master’s programs. Join us to:

1

Network with like-minded peers.

2

Study in vibrant Barcelona.

3

Learn from world-renowned faculty.

Admissions and requirements

Participants to BSE Summer School must check they are eligible to apply.

Program date: June 30 - July 4, 2025

Early bird deadline: April 15, 2025

Requirements

Summer School applicants normally demonstrate one or more of the following:

A strong background in Economics or a field closely related to the course topic (Statistics, Law, etc.).
Postgraduate degree or current Master’s/PhD studies related to the course topic.
Relevant professional experience.

Requirements for Dynamic Structural Models for Policy Evaluation

A strong understanding of Econometrics (as covered in Wooldridge, 2002) and Dynamic Programming (specifically Chapters 1-2 of Adda and Cooper, 2003) is highly recommended.

Apply now

Schedule

Here is your schedule for this edition of BSE Microeconometrics Dynamic Structural Models for Policy Evaluation course.

Time

30

mon

1

tue

2

wed

3

thu

4

fri

11:30 - 13:30

Lecture

16:15 - 17:45

Practical

Credit transfers (ECTS)

To be eligible for credit transfer, students must complete a final project.

Students will deliver a short final project one week after the summer school finishes.

It will consist of completing an assignment that will include the practical and empirical issues worked on in class.

Consult the Summer School Admissions page for more information about this option.

Certificate of Attendance

Participants not interested in credit transfer will instead receive a Certificate of Attendance free of charge. These Participants will not be graded or assessed during the course.

Fees for 2025

Multiple course discounts are available, see more information about available discounts. Fees for courses in other Summer School programs may vary

Course

Panel Data and Spatial Panels

Econometrics of Cross-section Data with Applications

Dynamic Structural Models for Policy Evaluation

Quantitative Methods for Public Policy Evaluation

Estimation in High-Dimensional Models

Difference-in-Differences with Panel Data

Dynamic and Non-linear Panel Data Models

Modality

Face to Face

Total Hours

17.5

ECTS

1

Regular Fee

1,375€

Reduced Fee*

775€

FAQ’s

Need more information? Check out our FAQ section or contact our Admissions Team.

Is accommodation included in the course fee?

Unfortunately, accommodation is not included in the course fee. Participants are responsible for finding accommodation.

Are the sessions recorded?

Sessions will be recorded and videos will be available for a month once the course has finished.

How much does each Summer School course cost?

Fees for each course may vary. Please consult each course page for accurate information.

Are there any discounts available?

Yes, BSE offers a variety of discounts on its Summer School courses. See more information about available discounts or request a personalized discount quote by email.