Probit with heteroscedasticity: an application to Indian poverty analysis
AbstractThis study argues that in limited dependent variable models, when there is heteroscedasticity, a probit model with a heteroscedastic structure should be estimated. The problem is illustrated using unit record data from the Indian National Sample Survey to analyse the determinants of poverty at household level. It is found that these biases are large even with large number of observations because in the limited dependent variable case, the bias does not vanish asymptotically when the assumption of homoscedasticity breaks down. Both regression coefficients and marginal effects differ widely between probit and hetprobit models in this study.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 13 (2006)
Issue (Month): 11 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEL20
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dreze, Jean & Srinivasan, P. V., 1997. "Widowhood and poverty in rural India: Some inferences from household survey data," Journal of Development Economics, Elsevier, vol. 54(2), pages 217-234, December.
- Ashwini Deshpande, 2000. "Does Caste Still Define Disparity? A Look at Inequality in Kerala, India," American Economic Review, American Economic Association, vol. 90(2), pages 322-325, May.
- Meenakshi, J. V. & Ray, Ranjan, 2002.
"Impact of household size and family composition on poverty in rural India,"
Journal of Policy Modeling,
Elsevier, vol. 24(6), pages 539-559, October.
- J.V. Meenakshi & Ranjan Ray, 2000. "Impact of Household Size and Family Composition on Poverty in Rural India," ASARC Working Papers 2000-02, The Australian National University, Australia South Asia Research Centre.
- Vani Borooah & Sriya Iyer, 2005.
"Vidya, Veda, and Varna: The influence of religion and caste on education in rural India,"
Journal of Development Studies,
Taylor & Francis Journals, vol. 41(8), pages 1369-1404.
- Vani K. Borooah & Sriya Iyer, 2002. "Vidya, Veda, and Varna: The Influence of Religion and Caste on Education in Rural India," ICER Working Papers 32-2002, ICER - International Centre for Economic Research.
- Mark N. Harris & Mark Rogers & Anthony Siouclis, 2001.
"Modelling Firm Innovation using Panel Probit Estimators,"
Melbourne Institute Working Paper Series
wp2001n20, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Mark Harris & Mark Rogers & Anthony Siouclis, 2003. "Modelling firm innovation using panel probit estimators," Applied Economics Letters, Taylor & Francis Journals, vol. 10(11), pages 683-686.
- Blundell, Richard W. & Laisney, François & Lechner, Michael, 1991.
"Alternative interpretations of hours information in an econometric model of labour supply,"
ZEW Discussion Papers
91-01, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Blundell, Richard & Laisney, Francois & Lechner, Michael, 1993. "Alternative Interpretations of Hours Information in an Econometric Model of Labour Supply," Empirical Economics, Springer, vol. 18(3), pages 393-415.
- J.V. Meenakshi & Ranjan Ray, 1999. "Impact of Household Size, Family Composition and Socio Economic Characteristics on Poverty in Rural India," Working papers 68, Centre for Development Economics, Delhi School of Economics.
- Gunewardena, Dileni & Van de Walle, Dominique, 2000.
"Sources of ethnic inequality in Vietnam,"
Policy Research Working Paper Series
2297, The World Bank.
- Horowitz, Joel L., 1993. "Semiparametric estimation of a work-trip mode choice model," Journal of Econometrics, Elsevier, vol. 58(1-2), pages 49-70, July.
- White, Halbert, 1982. "Maximum Likelihood Estimation of Misspecified Models," Econometrica, Econometric Society, vol. 50(1), pages 1-25, January.
- Yong Tu & Seow Ong & Ying Han, 2009. "Turnovers and Housing Price Dynamics: Evidence from Singapore Condominium Market," The Journal of Real Estate Finance and Economics, Springer, vol. 38(3), pages 254-274, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.