ERC Starting Grant · 2020
Analysis of Structural Economic Models: Misspecification and Flexible Estimation
Structural models are key tools of economists to evaluate and design policies. These models specify economic environments, estimate mechanisms that determine outcomes, and can be used for counterfactual predictions. One important class of models deals with skill and human capital formation, which is an important driver of economic growth and inequality. These models study the determinants of skill formation and the timing of optimal investments in children. Since structural models require simplifying assumptions, they are also prone to misspecification. The proposed research shows that existing skill formation models rely on seemingly innocuous normalizations, which can severely impact…
From the public funding record at EU CORDIS. Describes the funded project, not the reviews below.