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Simple Estimators for Binary Choice Models with Endogenous Regressors

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  • Yingying Dong

    ()
    (Department of Economics, University of California-Irvine)

  • Arthur Lewbel

    ()
    (Department of Economics, Boston College)

Abstract

This paper provides simple estimators for binary choice models with endogenous or mismeasured regressors. Unlike control function methods, which are generally only valid when endogenous regressors are continuous, the estimators proposed here can be used with limited, censored, continuous, or discrete endogenous regressors, and they also allow for latent errors having heteroskedasticity of unknown form, including random coefficients. The variants of special regressor based estimators we provide are numerically trivial to implement. We illustrate these methods with an empirical application estimating migration probabilities within the US.

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Bibliographic Info

Paper provided by University of California-Irvine, Department of Economics in its series Working Papers with number 111204.

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Length: 30 pages
Date of creation: Feb 2012
Date of revision:
Handle: RePEc:irv:wpaper:111204

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Related research

Keywords: Binary choice; Binomial response; Endogeneity; Measurement error; Heteroskedasticity; Discrete endogenous regressor; Censored regressor; Random coefficients; Identification; Latent variable model;

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References

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Cited by:
  1. Anna-Elisabeth Thum & Miroslav Beblavy, 2014. "Do Acquaintances and Friends Make Us Learn?: Social Capital and Lifelong Learning in Germany," SOEPpapers on Multidisciplinary Panel Data Research 673, DIW Berlin, The German Socio-Economic Panel (SOEP).
  2. Frédéric LESNE, 2013. "School Fees, Parental Participation and Accountability: Evidence from Madagascar," Working Papers, HAL halshs-00825240, HAL.
  3. Frédéric LESNE, 2013. "School Fees, Parental Participation and Accountability: Evidence from Madagascar," Working Papers, HAL halshs-00825244, HAL.

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