Recommended Reading
===================

To gain a deeper understanding of the underlying economic model and the mathematical
methods used for solving and estimating this model as well as obtaining a small
overview of the relevant literature we suggest the following supplementary material
depending on your current state of prior knowledge.

Before jumping right into reading the original papers (Keane and Wolpin 1994; 1997) it
can be very helpful to refresh your knowledge on discrete choice dynamic programming.

#. **Discrete Choice Methods with Simulation** (Kenneth Train, 2009, :cite:`Train.2009`)
   This book gives a concise introduction to static discrete choice models and the
   difficulties encountered in their estimation.

#. **Economic Dynamics: Theory and Computation** (John Stachurski, 2009,
   :cite:`Stachurski.2009`)
   In the first part of this book one finds a succinct introduction to deterministic and
   probabilistic dynamical systems. In particular, the topics Finite state Markov chains
   and Finite state dynamic programming are elucidated.

#. **The Structural Estimation of Behavioral Models: Discrete Choice Dynamic Programming
   Methods and Applications** (Keane, Wolpin and Todd, 2011, :cite:`Keane.2011`) In this
   handbook chapter discrete choice dynamic programming models are introduced including
   some applications in the field of labor economics.

#. **Dynamic discrete choice structural models: A survey** (Aguirregabiria and Mira,
   2010, :cite:`Aguirregabiria.2010`) In this comprehensive survey a more mathematically
   rigorous treatment of the subject is given.


Core References
---------------

The following studies served as the foundations of **respy** and are implemented as
exmaple models in the package.

* Keane, M. P. and  Wolpin, K. I. (1994). `The Solution and Estimation of Discrete Choice
  Dynamic Programming Models by Simulation and Interpolation: Monte Carlo Evidence
  <https://doi.org/10.2307/2109768>`_. *The Review of Economics and Statistics*, 76(4):
  648-672.


* Keane, M. P., & Wolpin, K. I. (1997). `The Career Decisions of Young Men
  <https://www.journals.uchicago.edu/doi/10.1086/262080>`_. *Journal of Political Economy*,
  105(3), 473-522.

* Keane, M. P., & Wolpin, K. I. (2000). `Eliminating Race Differences in School Attainment and 
  Labor Market Success <https://www.journals.uchicago.edu/doi/10.1086/209971>`_.
  *Journal of Labor Economics*, 18(4), 614-652.


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