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Semiparametric binary random effects models: Estimating two types of drinking behavior

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  • Dong, Yingying

Abstract

I propose a new estimator for cross-section semiparametric regressions containing unobserved binary random effects and apply it to alcohol consumption. The random effects (health consciousness) explain a significant proportion of otherwise unexplained variation in alcohol consumption. Education positively correlates with health consciousness.

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File URL: http://www.sciencedirect.com/science/article/pii/S0165176511000954
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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 112 (2011)
Issue (Month): 1 (July)
Pages: 79-81

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Handle: RePEc:eee:ecolet:v:112:y:2011:i:1:p:79-81

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Web page: http://www.elsevier.com/locate/ecolet

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Keywords: Random effects model Alcohol consumption Education;

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References

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  1. Manning, Willard G. & Blumberg, Linda & Moulton, Lawrence H., 1995. "The demand for alcohol: The differential response to price," Journal of Health Economics, Elsevier, vol. 14(2), pages 123-148, June.
  2. Cook, Philip J. & Moore, Michael J., 1993. "Drinking and schooling," Journal of Health Economics, Elsevier, vol. 12(4), pages 411-429, December.
  3. Xiaohong Chen & Oliver Linton & Ingrid Van Keilegom, 2003. "Estimation of Semiparametric Models when the Criterion Function Is Not Smooth," Econometrica, Econometric Society, vol. 71(5), pages 1591-1608, 09.
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Cited by:
  1. Yingyong Dong & Arthur Lewbel, 2009. "Nonparametric identification of a binary random factor in cross section data," CeMMAP working papers CWP16/09, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.

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