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Consistent estimation of binary-choice panel data models with heterogeneous linear trends

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Author Info
Alban Thomas

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Abstract

This paper presents an extension of fixed effects binary choice models for panel data, to the case of heterogeneous linear trends. Two estimators are proposed: a Logit estimator based on double conditioning and a semiparametric, smoothed maximum score estimator based on double differences. We investigate small-sample properties of these estimators with a Monte Carlo simulation experiment, and compare their statistical properties with standard fixed effects procedures. An empirical application to land renting decisions of Russian households between 1996 and 2002 is proposed. Copyright Royal Economic Society 2006

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1368-423X.2006.00181.x
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Publisher Info
Article provided by Royal Economic Society in its journal Econometrics Journal.

Volume (Year): 9 (2006)
Issue (Month): 2 (07)
Pages: 177-195
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Handle: RePEc:ect:emjrnl:v:9:y:2006:i:2:p:177-195

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  1. Michael Lechner & Stefan Lollivier & Thierry Magnac, 2005. "Parametric Binary Choice Models," University of St. Gallen Department of Economics working paper series 2005 2005-23, Department of Economics, University of St. Gallen. [Downloadable!]
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This page was last updated on 2009-11-27.


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