arXiv subjects

William Matcham

Publications and source records attributed to William Matcham.

2 recordsLinked to original sources

arXiv2026

The Anatomy of Dependence in Multivariate Ordered Choice

When individuals make simultaneous decisions across multiple ordered dimensions, standard multivariate ordered choice models impose narrow bracketing: each dimension is decided as if the others did not exist. We develop a general rectangular structure model capturing broad bracketing while nesting the standard model. The framework introduces two layers of dependence, one through the decision-threshold structure and the other through the correlation of latent utilities. We provide microfoundations, prove identification, and discuss estimation. We showcase the model in applications to parental investment in children's education, cryptocurrency familiarity and expectations, and health insurance, where the latter separates moral hazard from adverse selection.

econ.EM↗

arXiv2025

Multivariate Ordered Discrete Response Models with Lattice Structures

We analyze multivariate ordered discrete response models with a lattice structure, modeling decision makers who narrowly bracket choices across multiple dimensions. These models map latent continuous processes into discrete responses using functionally independent decision thresholds. In a semiparametric framework, we model latent processes as sums of covariate indices and unobserved errors, deriving conditions for identifying parameters, thresholds, and the joint cumulative distribution function of errors. For the parametric bivariate probit case, we separately derive identification of regression parameters and thresholds, and the correlation parameter, with the latter requiring additional covariate conditions. We outline estimation approaches for semiparametric and parametric models and present simulations illustrating the performance of estimators for lattice models.

econ.EM↗