Fast and simple inner-loop algorithms of static / dynamic BLP estimations

Fuente: arXiv
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Autore principale: Fukasawa, Takeshi
Natura: Preprint
Pubblicazione: 2024
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author Fukasawa, Takeshi
author_facet Fukasawa, Takeshi
contents This study investigates computationally efficient inner-loop algorithms for estimating static/dynamic BLP models. It provides the following ideas for reducing the number of inner-loop iterations: (1). Add a term relating to the outside option share in the BLP contraction mapping; (2). Analytically represent the mean product utilities as a function of value functions and solve for value functions (for dynamic BLP); (3). Combine an acceleration method of fixed-point iterations, especially the Anderson acceleration. They are independent and easy to implement. This study shows the good performance of these methods using numerical experiments.
format Preprint
id arxiv_https___arxiv_org_abs_2404_04494
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Fast and simple inner-loop algorithms of static / dynamic BLP estimations
Fukasawa, Takeshi
Econometrics
This study investigates computationally efficient inner-loop algorithms for estimating static/dynamic BLP models. It provides the following ideas for reducing the number of inner-loop iterations: (1). Add a term relating to the outside option share in the BLP contraction mapping; (2). Analytically represent the mean product utilities as a function of value functions and solve for value functions (for dynamic BLP); (3). Combine an acceleration method of fixed-point iterations, especially the Anderson acceleration. They are independent and easy to implement. This study shows the good performance of these methods using numerical experiments.
title Fast and simple inner-loop algorithms of static / dynamic BLP estimations
topic Econometrics
url https://arxiv.org/abs/2404.04494