Behavioral Econometrics for Psychologists

Steffen Andersen, Glenn W. Harrison, Morten Lau, E. Elisabet Rutström

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    Abstract

    We make the case that psychologists should make wider use of structural econometric methods. These methods involve the development of maximum likelihood estimates of models, where the likelihood function is tailored to the structural model. In recent years these models have been developed for a wide range of behavioral models of choice under uncertainty. We explain the components of this methodology, and illustrate with applications to major models from psychology. The goal is to build, and traverse, a constructive bridge between the modeling insights of psychology and the statistical tools of economists.

    Original languageEnglish
    Place of PublicationFrederiksberg
    PublisherCentre for Economic and Business Research, Copenhagen Business School
    Number of pages74
    Publication statusPublished - 2007
    SeriesCEBR Discussion Paper
    Number2007-16

    Cite this

    Andersen, S., Harrison, G. W., Lau, M., & Rutström, E. E. (2007). Behavioral Econometrics for Psychologists. Centre for Economic and Business Research, Copenhagen Business School. CEBR Discussion Paper, No. 2007-16