title

'Structural versus Reduced-Form Estimation of Optimal Stopping Problems'

author

'Bill Provencher'

url

'http://www.jstor.org/stable/1244135'

abstract

'In this paper I examine several statistical, interpretive, and policy implications of reduced-form (probit or logit) estimation of optimal stopping problems. The discussion proceeds in the context of an examination of the timber harvest decision of nonindustrial private forest (NIPF) owners. For a large class of optimal stopping problems a reduced-form model which closely approximates the statistical performance of its structural counterpart is readily found. Still, failure to properly interpret the relationship between the reduced-form model and the underlying optimal stopping problem invites flawed econometric analysis and inappropriate interpretation of reduced-form coefficients.'

journal

'American Journal of Agricultural Economics'

year

'1997'

Undefined

'00029092, 14678276'

'2'

'357--368'

'[Agricultural & Applied Economics Association, Oxford University Press]'

'79'