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Econometrica Vol. 58 No. 2 1990

Simple Estimation of a Duration Model with Unobserved Heterogeneity

Bo E. Honoré

Abstract

This paper presents a simple estimator of the shape parameter in a Weibull duration model with unobserved heterogeneity. The estimator is consistent and asymptotically normal under mild conditions, and a consistent estimator of the asymptotic variance is available. A Monte Carlo study indicates that the asymptotic distribution of the estimator provides a good approximation to the finite sample distribution. The estimation strategy can be extended to a model with regressors and to a log-logistic model with unobserved heterogeneity. The advantages of the estimator are that it is easy to calculate and that its asymptotic distribution can be derived.

DOI
10.2307/2938211
Volume
58
Issue
2
Pages
453
Sources
bibtex:phds-export.bib crossref openalex

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