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Many interesting economic variables are durations before an event occurs, such as the number of days a person is unemployed after losing a job or
Many interesting economic variables are durations before an event occurs, such as the number of days a person is unemployed after losing a job or the number of years a couple stays married. To describe such data, econometricians use duration models. We examine such models for the duration of unemployment, T . We write F the CDF of the random variable T and f its pdf. Recall that F (t) = P(T t)
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