https://macropaperwarehouse.com/authors/christian-michel/Christian MichelHugo -- gohugo.ioen-ushttps://macropaperwarehouse.com/papers/identification-of-time-inconsistent-models-the-case-of-insecticide-treated-nets/https://macropaperwarehouse.com/papers/identification-of-time-inconsistent-models-the-case-of-insecticide-treated-nets/<p>This paper addresses two related problems: the formal identification of time-inconsistent preferences in dynamic discrete choice models with unobserved heterogeneous types, and the structural estimation of those preferences using data from a health intervention in rural Orissa, India. The identification challenge is fundamental — even the standard exponential discount factor delta is generically not identified in dynamic choice models (Rust 1994; Magnac and Thesmar 2002), and this non-identification extends a fortiori to the hyperbolic (beta, delta) parameterization. The paper&rsquo;s first contribution is constructing identification conditions that overcome these results through two exclusion restrictions: a variable z that affects utility only through the perceived value of future states (played in the application by elicited beliefs about state evolution), and a variable r that acts as an imperfect signal of agent type but is uninformative about choices conditional on type.</p>