@@ -16,8 +16,10 @@ def estimate_transitions(df, repl_4=False):
1616 :param df: A pandas dataframe, which contains for each observation the Bus ID,
1717 the current state of the bus, the current period and the decision made in this
1818 period.
19- :param repl_4: Auxiliary variable indicating the complete setting of the
20- replication of the paper with group 4.
19+
20+ :param repl_4: Auxiliary variable indicating the transition estimation as in Rust
21+ (1987). The treatment of the engine replacement decision for the state
22+ transitions is hardcoded below.
2123
2224 :return: The optimization result of the transition probabilities estimation as a
2325 dictionary.
@@ -61,8 +63,10 @@ def create_increases(
6163 each period the state as an integer.
6264 :param decisions: A two dimensional numpy array containing for each bus in
6365 each period the decision as an integer.
64- :param repl_4: Auxiliary variable indicating the complete setting of the
65- replication of the paper with group 4.
66+
67+ :param repl_4: Auxiliary variable indicating the transition estimation as in Rust
68+ (1987). The treatment of the engine replacement decision for the state
69+ transitions is hardcoded below.
6670
6771 :return: A list with the highest increase as maximal index and the increase
6872 counts as entries.
@@ -75,7 +79,7 @@ def create_increases(
7579 state_count [states [bus , period ], states [bus , period + 1 ]] += 1
7680 else :
7781 if repl_4 :
78- increases [bus , period ] = 1
82+ increases [bus , period ] = 1 # This is the setting from Rust (1987)
7983 else :
8084 increases [bus , period ] = states [bus , period + 1 ]
8185 state_count [0 , increases [bus , period ]] += 1
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