Structural Estimation in Urban Economics

Thomas J. Holmes, Holger Sieg

Research output: Chapter in Book/Report/Conference proceedingChapter

20 Scopus citations

Abstract

Structural estimation is a methodological approach in empirical economics explicitly based on economic theory, in which economic modeling, estimation, and empirical analysis are required to be internally consistent. This chapter illustrates the structural approach with three applications in urban economics: (1) discrete location choice, (2) fiscal competition and local public good provision, and (3) regional specialization. For each application, we first discuss broad methodological principles of model selection and development. Next we treat issues of identification and estimation. The final step of each discussion is how estimated structural models can be used for policy analysis.

Original languageEnglish (US)
Title of host publicationHandbook of Regional and Urban Economics
PublisherElsevier B.V.
Pages69-114
Number of pages46
DOIs
StatePublished - Jan 1 2015

Publication series

NameHandbook of Regional and Urban Economics
Volume5
ISSN (Print)1574-0080

Keywords

  • Fiscal competition
  • Public good provision
  • Regional specialization
  • Structural estimation

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