The second author gratefully acknowledges that this research was supported by grant number ECO2009-11165 from the Spanish Minister of Science.
The Identification of a Mixture of First-Order Binary Markov Chains*
Article first published online: 22 FEB 2012
© Blackwell Publishing Ltd and the Department of Economics, University of Oxford 2012
Oxford Bulletin of Economics and Statistics
Volume 75, Issue 3, pages 455–459, June 2013
How to Cite
Browning, M. and Carro, J. M. (2013), The Identification of a Mixture of First-Order Binary Markov Chains. Oxford Bulletin of Economics and Statistics, 75: 455–459. doi: 10.1111/j.1468-0084.2012.00696.x
- Issue published online: 12 APR 2013
- Article first published online: 22 FEB 2012
- Final Manuscript Received: January 2012
Let S be the number of components in a finite discrete mixing distribution. We prove that the number of waves of panel being greater than or equal to 2S is a sufficient condition for global identification of a dynamic binary choice model in which all the parameters are heterogeneous. This model results in a mixture of S binary first-order Markov Chains.