Introduction

This volume of Advances in Econometrics focuses on recent developments in the use of structural econometric models in empirical economics. The papers in this volume are divided into three broad groups.

Recent Developments in Dynamic Discrete Choice Models

The first part looks at recent developments in the estimation of dynamic discrete choice models. This includes using new estimation methods for these models based on Euler equations, estimation using sieve approximation of high dimensional state space, the identification of Markov dynamic games with persistent unobserved state variables, and developing tests of monotone comparative static in models of multiple equilibria.

Advances in Empirical Matching Models

The second part looks at recent advances in the area of empirical matching models. The papers in this section focus on developing estimators for matching models based on stability conditions, estimating matching surplus functions using generalized entropy functions, and solving for the fixed point in the Choo-Siow matching model using a contraction mapping formulation. While the issue of incomplete, or partial identification of model parameters is touched upon in some chapters, two chapters focus on this issue, in the context of testing for monotone comparative statics in models with multiple equilibria, and estimation of supermodular games under the restrictions that players' strategies be rationalizable.

Empirical Applications of Structural Econometric Models

The last group of three papers looks at empirical applications using structural econometric models. Two applications apply matching models to solve endogenous matching to the loan spread equation and to endogenize marriage in the collective model of intrahousehold allocation. Another application examines the market power of condominium developers in the Japanese housing market in the 1990s.