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The Exact Likelihood Function for an Empirical 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 job search model is analyzed. The optimality condition implied by the dynamic programming framework is fully imposed. Using the optimality condition allows identification of an offer arrival probability separately from an offer acceptance probability. The estimation problem is nonstandard. The geometry of the likelihood function in finite samples is considered, along with asymptotic properties of the maximum likelihood estimator.

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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