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Structural Econometric Modeling Rationales and Examples ...

Chapter 64. Structural Econometric Modeling : Rationales AND Examples FROM INDUSTRIAL. ORGANIZATION. PETER C. REISS. Graduate School of Business, Stanford University, Stanford, CA 94305-5015, USA. e-mail: FRANK A. WOLAK. Department of Economics, Stanford University, Stanford, CA 94305-6072, USA. e-mail: Contents Abstract 4280. Keywords 4280. 1. Introduction 4281. 2. Structural models defined 4282. 3. Constructing Structural models 4285. Sources of structure 4285. Why add structure? 4288. Evaluating structure single equation models 4290. Evaluating structure simultaneous equation models 4293. The role of nonexperimental data in Structural Modeling 4301. 4. A framework for Structural Econometric models in IO 4303.

7.2.3. The stochastic model 4344 7.2.4. Results 4347 7.3. A product-level demand model 4348 7.3.1. The economic model in BLP 4349 7.3.2. The stochastic model 4350 7.4. More on the econometric assumptions 4353 7.4.1. Functional form assumptions for price 4353 7.4.2. Distribution of consumer heterogeneity 4355 7.4.3. Unobserved “product quality ...

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