STRUCTURAL ECONOMETRICS
FOR INDUSTRIAL ORGANIZATION
Victor Aguirregabiria
(University of Toronto)
Barcelona Micro-Econometrics Summer School.
Barcelona Graduate School of Economics (BGSE)
Dates: 4-8 July, 2011
1. SYLLABUS
2. CLASS NOTES
3. SLIDES
·
Introduction
· Static
Models of Entry and Market Structure
· Introduction
to Dynamic Structural Models in Empirical IO
· Dynamic
Demand of Differentiated Products
· Dynamic
Games
4. LIST OF REQUIRED READINGS
A. Static Models of Market Entry
and Market Structure
o Bresnahan,
Timothy and Peter Reiss (1991): “Entry and Competition in Concentrated
Markets,” Journal of Political Economy, 99, 977-1009.
o Bresnahan,
Timothy and Peter Reiss (1990): “Entry
in Monopoly Markets,” The Review of Economic Studies, Vol. 57, No. 4. (Oct., 1990),
pp. 531-553.
o Bresnahan,
Timothy and Peter Reiss (1991): “Empirical
Models of Discrete Games,” Journal of Econometrics.
o Seim,
K. (2006): “An Empirical Model of Firm Entry with Endogenous Product-Type
Choices,” forthcoming, RAND Journal of Economics, vol. 37, issue 3,
619-640.
o Sweeting,
A. (2009): “The Strategic Timing of Radio
Commercials: An Empirical Analysis Using Multiple Equilibria,” RAND Journal
of Economics, 40(4), 710-742.
B. Dynamic Single-Agent Models:
Investment, Capacity, Store Location
o Rust,
J. (1992): "Do People Behave According to Bellman’s Principle of
Optimality,” manuscript.
o Rust,
J. (2006): "Dynamic Programming,” New Palgrave Dictionary of Economics.
o Aguirregabiria,
Victor and Mira, Pedro (2010): “Dynamic Discrete Choice Structural Models: A
Survey,” Journal of Econometrics, 156(1), 38-67.
o Rust,
J. (1987): "Optimal replacement of GMC bus engines: An empirical model of
Harold Zurcher," Econometrica, 55, 999-1033.
o
Aguirregabiria,
V. (1999): "The Dynamics of Markups and Inventories in Retailing
Firms," Review of Economic Studies, 66(2), 275-308.
o Holmes,
T. (2010): “Diffusion of
Wal-Mart and Economies of Density,” Econometrica, 79, 253-302.
C. Dynamic Demand of Differentiated
Products
o Hendel,
I. and A. Nevo (2006): “Measuring the Implications of Sales and Consumer
Stockpiling Behavior,” Econometrica, 74(6), 1637-1673.
o Aguirregabiria, V. and A. Nevo (2010): “Recent
Developments in Empirical IO: Dynamic Demand and Dynamic Games,” manuscript.
D. Estimation of Dynamic Games
o Aguirregabiria,
V. and P. Mira (2007): “Sequential Estimation of Dynamic Discrete Games,” Econometrica,
75, 1-53.
o
Bajari,
P., L. Benkard, and J. Levin (2007): “Estimating Dynamic Models of Imperfect Competition,”
Econometrica, vol.
75, issue 5, pages 1331-1370.
o Ryan, S. (2010):
“The Costs of Environmental Regulation in a Concentrated Industry,” manuscript.
MIT.
o Sweeting,
A. (2011): “Dynamic Product Repositioning in Differentiated Product Industries:
The Effect of Fees for Musical Performance Rights on the Commercial Radio
Industry,” manuscript
o Collard-Wexler,
A. (2010): “Demand Fluctuations in the Ready-Mix Concrete Industry,” manuscript
o Aguirregabiria, V., and C-Y Ho (2010): “A
Dynamic Oligopoly Game of the US Airline Industry: Estimation and Policy
Experiments,” manuscript
5. COMPUTER CODE AND DATA
· DEMO
1: (PDF) EXAMPLE OF PANEL DATASET OF LOCAL GEOGRAPHIC MARKETS. CHILEAN BUSINESS
CENSUS: 1994-1999. SOME RETAIL INDUSTRIES (5 DIGITS INDUSTRY CODE)
·
DEMO
1: STATA dataset
· DEMO
2: (PDF) SOLUTION AND SIMULATION OF SIMPLE MODEL OF OLIGOPOLY COMPETITION WITH
ENDOGENOUS ENTRY
·
DEMO 2:
GAUSS code
· DEMO
3: (PDF) NESTED PSEUDO LIKELIHOOD ESTIMATION OF STATIC GAME OF MARKET ENTRY
·
DEMO 3:
GAUSS code
·
DEMO
3: DATA SET IN GAUSS FORMAT (.dat)
·
DEMO
3: DATA SET IN GAUSS FORMAT (.dht)
·
DEMO
3: DATA SET IN STATA FORMAT (.dta)
· DEMO
4: (PDF) ESTIMATION DYNAMIC DISCRETE CHOICE MODEL: RUST’s BUS REPLACEMENT MODEL
·
DEMO 4:
GAUSS code
·
DEMO 4: RUST’s BUS
ENGINE DATA. GAUSS FORMAT (.dat)
·
DEMO 4: RUST’s BUS
ENGINE DATA. GAUSS FORMAT (.dht)
·
DEMO 4: RUST’s BUS
ENGINE DATA. STATA FORMAT (.dta)
· DEMO
5: (PDF) SOLUTION, SIMULATION, AND ESTIMATION OF DYNAMIC GAME OF MARKET
ENTRY-EXIT
·
DEMO 5:
GAUSS code