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Finite-Sample Moments of the MLE for the Binary Logit Model

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Author Info
Qian Chen (School of Public Finance & Public Policy, Central University of Finance & Economics, People's Republic of China)
David E. Giles () (Department of Economics, University of Victoria)

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Abstract

We examine the finite sample properties of the MLE for the Logit model with random covariates. We derive the second order bias and MSE function for the MLE in this model, and undertake some numerical evaluations to illustrate the analytic results. From these numerical results we find, for example, that the bias correction that we provide is effective, and that the bias-corrected estimator is more efficient than the uncorrected MLE.

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File URL: http://web.uvic.ca/econ/research/papers/ewp0801.pdf
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Publisher Info
Paper provided by Department of Economics, University of Victoria in its series Econometrics Working Papers with number 0801.

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Length: 21 pages
Date of creation: 01 Feb 2008
Date of revision:
Handle: RePEc:vic:vicewp:0801

Note: ISSN 1485-6441
Contact details of provider:
Postal: PO Box 1700, STN CSC, Victoria, BC, Canada, V8W 2Y2
Phone: (250)721-8540
Fax: (250)721-6214
Web page: http://web.uvic.ca/econ
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Related research
Keywords: Logit model; mean squared error; bias correction;

Find related papers by JEL classification:
C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Estimation
C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models

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This page was last updated on 2009-11-25.


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