We found a match
Your institution may have rights to this item. Sign in to continue.
- Title
Statistical Backwards Induction: A Simple Method for Estimating Recursive Strategic Models.
- Authors
Muhammet Ali Bas; Curtis S. Signorino; Robert W. Walker
- Abstract
We present a simple method for estimating regressions based on recursive extensive-form games. Our procedure, which can be implemented in most standard statistical packages, involves sequentially estimating standard logits (or probits) in a manner analogous to backwards induction. We demonstrate that the technique produces consistent parameter estimates and show how to calculate consistent standard errors. To illustrate the method, we replicate Leblangs (2003) study of speculative attacks by financial markets and government responses to these attacks.
- Subjects
REGRESSION analysis; MARKET volatility; SPECULATION; PARAMETER estimation; LOGITS; PROBITS; RECURSION theory
- Publication
Political Analysis, 2008, Vol 16, Issue 1, p21
- ISSN
1047-1987
- Publication type
Article
- DOI
10.1093/pan/mpm029