A Hausman test for a dummy variable in probit
A new Hausman test is presented for the exogeneity of a dummy variable in a probit model. It is very easy to implement because of the equivalence of the log likelihood functions for bivariate probit and recursive probit. The procedure is applied to a model of student loan default due to Knapp and Seaks (1992).
Volume (Year): 5 (1998)
Issue (Month): 5 ()
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