{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2024,4,27]],"date-time":"2024-04-27T04:35:44Z","timestamp":1714192544553},"reference-count":23,"publisher":"Cambridge University Press (CUP)","issue":"3","license":[{"start":{"date-parts":[[2009,2,11]],"date-time":"2009-02-11T00:00:00Z","timestamp":1234310400000},"content-version":"unspecified","delay-in-days":4273,"URL":"https:\/\/www.cambridge.org\/core\/terms"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Econ Theory"],"published-print":{"date-parts":[[1997,6]]},"abstract":"<jats:p>This paper examines the properties of various approximation methods for solving stochastic dynamic programs in structural estimation problems. The problem addressed is evaluating the expected value of the maximum of available choices. The paper shows that approximating this by the maximum of expected values frequently has poor properties. It also shows that choosing a convenient distributional assumptions for the errors and then solving exactly conditional on the distributional assumption leads to small approximation errors even if the distribution is misspecified.<\/jats:p>","DOI":"10.1017\/s0266466600005867","type":"journal-article","created":{"date-parts":[[2009,3,10]],"date-time":"2009-03-10T15:36:14Z","timestamp":1236699374000},"page":"392-405","source":"Crossref","is-referenced-by-count":5,"title":["Approximate Solutions to Stochastic Dynamic Programs"],"prefix":"10.1017","volume":"13","author":[{"given":"Steven","family":"Stern","sequence":"first","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"56","published-online":{"date-parts":[[2009,2,11]]},"reference":[{"key":"S0266466600005867_ref012","first-page":"19","volume-title":"Topics in the Economics of Aging","author":"Lumsdainc","year":"1991"},{"key":"S0266466600005867_ref005","doi-asserted-by":"publisher","DOI":"10.2307\/145996"},{"key":"S0266466600005867_ref022","doi-asserted-by":"publisher","DOI":"10.1086\/261262"},{"key":"S0266466600005867_ref019","first-page":"359","volume-title":"The Economics of Aging","author":"Rust","year":"1989"},{"key":"S0266466600005867_ref016","doi-asserted-by":"publisher","DOI":"10.1086\/261276"},{"key":"S0266466600005867_ref006","unstructured":"Engen E. (1992) Precautionary Saving, Consumption, and Taxation in a Life Cycle Model with Stochastic Earnings and Mortality Risk. Ph.D. Dissertation, University of Virginia, Charlottesville."},{"key":"S0266466600005867_ref021","doi-asserted-by":"publisher","DOI":"10.2307\/2938304"},{"key":"S0266466600005867_ref011","volume-title":"Continuous Univariate Distributions","author":"Johnson","year":"1970"},{"key":"S0266466600005867_ref015","first-page":"198","volume-title":"Structural Analysis of Discrete Data with Econometric Applications","author":"McFadden","year":"1981"},{"key":"S0266466600005867_ref020","unstructured":"Stern S. (1994) Approximate solutions to stochastic dynamic programs. Manuscript, University of Virginia, Charlottesville."},{"key":"S0266466600005867_ref010","doi-asserted-by":"crossref","unstructured":"Hubbard G. , Skinner J. , & Zeldes S. (1993) Precautionary Saving and Social Insurance. Working paper, National Bureau of Economic Research, Cambridge.","DOI":"10.3386\/w4884"},{"key":"S0266466600005867_ref001","doi-asserted-by":"publisher","DOI":"10.1016\/0304-4076(93)90123-M"},{"key":"S0266466600005867_ref002","doi-asserted-by":"crossref","unstructured":"Ausink J. & Wise D. (1993) The Military Pension, Compensation, and Retirement of U.S. Air Force Pilots. Working paper 4593, National Bureau of.Economic Research, Cambridge.","DOI":"10.3386\/w4593"},{"key":"S0266466600005867_ref009","doi-asserted-by":"publisher","DOI":"10.2307\/2297981"},{"key":"S0266466600005867_ref008","doi-asserted-by":"publisher","DOI":"10.2307\/1912352"},{"key":"S0266466600005867_ref017","doi-asserted-by":"publisher","DOI":"10.2307\/1912835"},{"key":"S0266466600005867_ref003","doi-asserted-by":"publisher","DOI":"10.2307\/2938246"},{"key":"S0266466600005867_ref007","doi-asserted-by":"publisher","DOI":"10.1016\/0304-4076(88)90027-9"},{"key":"S0266466600005867_ref013","unstructured":"Manski C. (1988) Path utility analysis of dynamic choice. Manuscript, University of Wisconsin, Madison."},{"key":"S0266466600005867_ref018","unstructured":"Palumbo M. (1991) Health Uncertainty and Optimal Consumption Near the End of the Life Cycle. Ph.D. Dissertation, University of Virginia, Charlottesville."},{"key":"S0266466600005867_ref004","unstructured":"Christensen B. (1990) Estimation of Dynamic Programming Models. Ph.D. Dissertation, Cornell University, Ithaca, New York."},{"key":"S0266466600005867_ref023","doi-asserted-by":"publisher","DOI":"10.2307\/1911030"},{"key":"S0266466600005867_ref014","first-page":"259","volume-title":"Nonparametric and Semiparametric Methods in Econometrics and Statistics","author":"Manski","year":"1991"}],"container-title":["Econometric Theory"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/www.cambridge.org\/core\/services\/aop-cambridge-core\/content\/view\/S0266466600005867","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2019,5,11]],"date-time":"2019-05-11T20:53:10Z","timestamp":1557607990000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.cambridge.org\/core\/product\/identifier\/S0266466600005867\/type\/journal_article"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[1997,6]]},"references-count":23,"journal-issue":{"issue":"3","published-print":{"date-parts":[[1997,6]]}},"alternative-id":["S0266466600005867"],"URL":"https:\/\/doi.org\/10.1017\/s0266466600005867","relation":{},"ISSN":["0266-4666","1469-4360"],"issn-type":[{"value":"0266-4666","type":"print"},{"value":"1469-4360","type":"electronic"}],"subject":[],"published":{"date-parts":[[1997,6]]}}}