Differentiated products demand systems are a workhorse for understanding the price effects
of mergers, the value of new goods, and the contribution of products to seller networks …

Inverse optimization describes a process that is the “reverse” of traditional mathematical
optimization. Unlike traditional optimization, which seeks to compute optimal decisions given …

This paper develops a multi‐stage general‐equilibrium model of global value chains (GVCs)
and studies the specialization of countries within GVCs in a world with barriers to …

Reinforcement learning algorithms describe how an agent can learn an optimal action policy
in a sequential decision process, through repeated experience. In a given environment, the …

How large are optimal tariffs? What tariffs would prevail in a worldwide trade war? How
costly would a breakdown of international trade policy cooperation be? And what is the …

We study discrete panel data methods where unobserved heterogeneity is revealed in a first
step, in environments where population heterogeneity is not discrete. We focus on two‐step …

We adapt the expectation–maximization algorithm to incorporate unobserved heterogeneity
into conditional choice probability (CCP) estimators of dynamic discrete choice problems …

The widely used estimator of Berry, Levinsohn, and Pakes (1995) produces estimates of
consumer preferences from a discrete‐choice demand model with random coefficients …

Most international commerce is carried out by multinational firms, which use their foreign
affiliates both to serve the market of the host country and to export to other markets outside …

Most new consumer durable goods experience rapid prices declines and quality
improvements, suggesting the importance of modeling dynamics. This paper specifies a …