Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/228148
Authors: 
Guerini, Mattia
Musso, Patrick
Nesta, Lionel
Year of Publication: 
2020
Series/Report no.: 
LEM Working Paper Series No. 2020/09
Abstract: 
We develop a new method to estimate the parameters of threshold distributions for market participation based upon an agent-specific attribute and its decision outcome. This method requires few behavioral assumptions, is not data demanding, and can adapt to various parametric distributions. Monte Carlo simulations show that the algorithm successfully recovers three different parametric distributions and is resilient to assumption violations. An application to export decisions by French firms shows that threshold distributions are generally right-skewed. We then reveal the asymmetric effects of past policies over different quantiles of the threshold distributions.
Subjects: 
Parametric Distributions of Thresholds
Maximum Likelihood Estimation
Fixed Costs
Export Decision
JEL: 
C40
D01
F14
Document Type: 
Working Paper

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