<p>I took a behavioral econ class and learnt the &quot;structural estimation&quot; of risk-aversion parameter.</p>
<p>Later some friends told me that what I learnt is too simple when I was bragging about my term paper in structural estimation. They said structural estimation is much, much more complicated than that.</p>
<p>I understand that behavioral econ is only a small field. I later learnt that structural estimation is also applied in international econ, <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4336916" rel="nofollow noreferrer">accounting</a>, <a href="https://finance-faculty.wharton.upenn.edu/luket/wp-content/uploads/sites/10/2017/04/Structural_estimation_2017.pdf" rel="nofollow noreferrer">corporate finance</a>. I am interested in:</p>
<ol>
<li>A rigorous methodology paper on structural estimation. Preferable include some prominent example that had a great impact on human history.</li>
</ol>
<p>If there is no such paper, I am most interested in:</p>
<ol start="2">
<li>An example structural model whose importance influenced human history (or economic history at least).</li>
</ol>
<p>Estimating risk-aversion parameter is very impactful I think. I am looking for a historical work that is both not too simple and several order of magnitude more impactful than that. The Roy model on wage and relocation is impactful, but too simple. My <strong>criteria</strong> of simpleness is that the decision must be determined with two or more factors, not just one. In the Roy model, the worker will relocate if and only if <span class="math-container">$w_2+\epsilon-C&gt;w_1$</span>: this is a single-factor decision model where the worker only care about money, which is too simple.</p>
<p>Note, guys on AEA has suggested:</p>
<ol>
<li>Highly recommend this book by Ken Wolpin : <a href="https://mitpress.mit.edu/books/limits-inference-without-theory" rel="nofollow noreferrer">https://mitpress.mit.edu/books/limits-inference-without-theory</a></li>
</ol>

CC BY-SA 4.0
2023-12-01T21:31:53.217Z
how do you define most famous? Highest number of citations?
1muflon1
CC BY-SA 4.0
2023-12-01T21:38:41.487Z
@1muflon1 Sure, why not. I think "one" of the most famous work is fine. No need to be that strict
dodo
CC BY-SA 4.0
2023-12-04T23:52:58.693Z
I don't know if there are famous examples but, if I wanted to find one, I'd probably look at  "Structural Macro-Econometrics" by Dejong and a co-author whose name escapes me.
mark leeds
<macroeconomics><microeconomics><risk><structural-estimation>
What is a very very famous example of structural estimation?
dodo
# What is a very very famous example of structural estimation?

(Asked by: username_0 on 2023-12-01)

I took a behavioral econ class and learnt the "structural estimation" of risk-aversion parameter.

Later some friends told me that what I learnt is too simple when I was bragging about my term paper in structural estimation. They said structural estimation is much, much more complicated than that.

I understand that behavioral econ is only a small field. I later learnt that structural estimation is also applied in international econ, [accounting](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4336916), [corporate finance](https://finance-faculty.wharton.upenn.edu/luket/wp-content/uploads/sites/10/2017/04/Structural_estimation_2017.pdf). I am interested in:

1. A rigorous methodology paper on structural estimation. Preferable include some prominent example that had a great impact on human history.

If there is no such paper, I am most interested in:

2. An example structural model whose importance influenced human history (or economic history at least).

Estimating risk-aversion parameter is very impactful I think. I am looking for a historical work that is both not too simple and several order of magnitude more impactful than that. The Roy model on wage and relocation is impactful, but too simple. My **criteria** of simpleness is that the decision must be determined with two or more factors, not just one. In the Roy model, the worker will relocate if and only if $w\_2+\epsilon-C>w\_1$: this is a single-factor decision model where the worker only care about money, which is too simple.

Note, guys on AEA has suggested:

1. Highly recommend this book by Ken Wolpin : <https://mitpress.mit.edu/books/limits-inference-without-theory>

**Tags:** macroeconomics, microeconomics, risk, structural-estimation
> **Comments:**
> **username_1**: how do you define most famous? Highest number of citations?  
> **username_0**: @1muflon1 Sure, why not. I think "one" of the most famous work is fine. No need to be that strict  
> **username_2**: I don't know if there are famous examples but, if I wanted to find one, I'd probably look at  "Structural Macro-Econometrics" by Dejong and a co-author whose name escapes me.  

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## 0 answers

