Appendix H
Discrete-Time Hazard
(Source: Cameron and Trivedi [1])
The starting point is to define the discrete-time hazard function as the probability of transaction at discrete time 
given survival to time 
:
where the superscript d denotes discrete, and where 
, an adjustment made because formally 
equals 
rather than 
.
The discrete-time survivor function is obtained recursively from the hazard function as
(H.2) 
For example, 
equals the probability of no transition at time 
times the probability ...
