Here we distinguish between a reduced-form approach, that leads to panel data discrete choice models. In these models individual effects and dynamics are important. Simulation estimation is needed to overcome the computational problems. Finally, we introduce dynamic decision models for forward looking agents who face irreversible decisions. As an application we consider some models in economic demography.
Duration models apply if there is no natural decision period.
Again we discuss the specification and estimation of such models. The role of distributional and functional form assumptions and the possibility of relaxing these are considered. Observation plans play an important role in duration data and we discuss their impact on inference. Censoring is common in duration data. The final model that we consider is the censored regression model, where censoring may be a feature of the economic model.