Post-Randomization Under Test: Estimation of the Probit Model
The paper analyzes effects of randomized response with respect to some binary dependent variable on the estimation of the probit model. This approach is used in interviews when asking sensitive questions or if a respondent erroneously chooses the wrong category in an interview leading to 'misclassification'. Alternatively, randomization can be used for statistical disclosure control and then is called 'post randomization method' (PRAM). We consider two variants which are termed 'ordinary' and 'invariant' PRAM the latter being of importance mainly in descriptive analysis. Maximum likelihood estimation of the corrected likelihood results in consistent estimates although variances increase considerably for 'strong' randomization. Moreover a finite sample bias has been observed in the simulation study, but it is much less pronounced than the bias implied from use of the 'naive' probit estimator when the binary dependent variable has been randomized. Effects of randomization on the probit estimates are also illustrated by an empirical study using cross-section data from the German 'IAB establishment panel' (IAB Betriebspanel). The decision of firms to accept a collective bargaining agreement ('Tarifvertrag') is analyzed in a binary probit model using both original data and data masked by ordinary and invariant PRAM. Here, too, a remarkable bias is observed in case of 'strong' randomization.
If 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.
Volume (Year): 225 (2005)
Issue (Month): 5 (September)
|Contact details of provider:|| Postal: |
Phone: +49 (0)641 99 22 001
Fax: +49 (0)641 99 22 009
Web page: http://wiwi.uni-giessen.de/home/oekonometrie/Jahrbuecher/
More information through EDIRC
References listed on IDEAS
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.:
- Ronning, Gerd, 2005. "Randomized response and the binary probit model," Economics Letters, Elsevier, vol. 86(2), pages 221-228, February.
- Frazis, Harley & Loewenstein, Mark A., 2003. "Estimating linear regressions with mismeasured, possibly endogenous, binary explanatory variables," Journal of Econometrics, Elsevier, vol. 117(1), pages 151-178, November.
- Hausman, J. A. & Abrevaya, Jason & Scott-Morton, F. M., 1998. "Misclassification of the dependent variable in a discrete-response setting," Journal of Econometrics, Elsevier, vol. 87(2), pages 239-269, September.
- Han, Aaron K., 1987. "Non-parametric analysis of a generalized regression model : The maximum rank correlation estimator," Journal of Econometrics, Elsevier, vol. 35(2-3), pages 303-316, July.
When requesting a correction, please mention this item's handle: RePEc:jns:jbstat:v:225:y:2005:i:5:p:544-566. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Winker)
If references are entirely missing, you can add them using this form.