Probit Models with Binary Endogenous Regressors
AbstractSample selection and endogeneity are frequent causes of biases in non-experimental empirical studies. In binary models a standard solution involves complex multivariate models. A simple approximation has been shown to work well in bivariate models. This paper extends the approximation to a trivariate model. Simulations show that the approximation outperforms full maximum likelihood while a least squares approximation may be severely biased. The methods are used to estimate the influence of trust in the parliament and politicians on voting- propensity. No previous studies have allowed for endogeneity of trust on voting and it is shown to severely affect the results.
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.
Bibliographic InfoPaper provided by University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics in its series CAM Working Papers with number 2006-06.
Length: 19 pages
Date of creation: Feb 2006
Date of revision:
Contact details of provider:
Postal: Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark
Phone: (45) 35 32 30 74
Fax: +45 35 32 30 00
Web page: http://www.econ.ku.dk/CAM/
More information through EDIRC
endogeneity; multivariate probit; approximation; Monte Carlo simulation;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-03-11 (All new papers)
- NEP-DCM-2006-03-11 (Discrete Choice Models)
- NEP-ECM-2006-03-11 (Econometrics)
- NEP-POL-2006-03-11 (Positive Political Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- David Hensher, 2013. "Exploring the relationship between perceived acceptability and referendum voting support for alternative road pricing schemes," Transportation, Springer, Springer, vol. 40(5), pages 935-959, September.
- Damien S.Eldridge & Ilke Onur & Malathi Velamuri & Cagatay Koc, 2013. "The Impact of Private Hospital Insurance on the Utilization of Hospital Care In Australia," Working Papers, School of Economics, La Trobe University 2013.03, School of Economics, La Trobe University.
- Raoul Minetti & Pierluigi Murro & Monica Paiella, 2012.
"Ownership Structure, Governance, and Innovation: Evidence from Italy,"
Working Papers, Department of the Treasury, Ministry of the Economy and of Finance
10, Department of the Treasury, Ministry of the Economy and of Finance.
- Raoul Minetti & Pierluigi Murro & Monica Paiella, 2011. "Ownership structure, governance, and innovation: Evidence from Italy," Discussion Papers, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy 1_2011, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
- Demidova, Olga, 2011. "Modeling of public trust in basic social and political institutions: A comparative econometric analysis," Applied Econometrics, Publishing House "SINERGIA PRESS", Publishing House "SINERGIA PRESS", vol. 21(1), pages 114-132.
- Ben Aoun - Peltier, Leila & Vicente Cuervo, Maria Rosalia, 2012. "E-commerce diffusion: exploring the determinants of the adoption and extent of usage at firm-level," MPRA Paper 49333, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Hoffmann).
If references are entirely missing, you can add them using this form.