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The Exact Likelihood Function for anEmpirical Job Search Model

Published online by Cambridge University Press:  11 February 2009

Bent Jesper Christensen  and
Nicholas M. Kiefer
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Abstract

The exact likelihood function for a prototypal jobsearch model is analyzed. The optimality conditionimplied by the dynamic programming framework isfully imposed. Using the optimality condition allowsidentification of an offer arrival probabilityseparately from an offer acceptance probability. Theestimation problem is nonstandard. The geometry ofthe likelihood function in finite samples isconsidered, along with asymptotic properties of themaximum likelihood estimator.

Information

Type
Research Article
Information
Econometric Theory , Volume 7 , Issue 4 , December 1991 , pp. 464 - 486
Copyright
Copyright © Cambridge University Press 1991

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