TY  - JOUR
AU  - Fang,Hanming
AU  - Wang,Yang
TI  - Estimating Dynamic Discrete Choice Models with Hyperbolic Discounting, with an Application to Mammography Decisions
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 16438
PY  - 2010
Y2  - October 2010
UR  - http://www.nber.org/papers/w16438
L1  - http://www.nber.org/papers/w16438.pdf
N1  - Author contact info:
Hanming Fang
Department of Economics
University of Pennsylvania
3718 Locust Walk
Philadelphia, PA 19104
Tel: 215-898-7767
Fax: 215-573-2057
E-Mail: hanming.fang@econ.upenn.edu

Yang Wang
Department of Economics
Lafayette College
Easton, PA 18042
E-Mail: wangy@lafayette.edu
AB  - We extend the semi-parametric estimation method for dynamic discrete choice models using Hotz and Miller's (1993) conditional choice probability (CCP) approach to the setting where individuals may have hyperbolic discounting time preferences and may be naive about their time inconsistency. We illustrate the proposed estimation method with an empirical application of adult women's decisions to undertake mammography to evaluate the importance of present bias and naivety in the under-utilization of this preventive health care. Our results show evidence for both present bias and naivety.
ER  -