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A Hausman test for a dummy variable in probit

Author

Listed:
  • Laura Greene Knapp
  • Terry Seaks

Abstract

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).

Suggested Citation

  • Laura Greene Knapp & Terry Seaks, 1998. "A Hausman test for a dummy variable in probit," Applied Economics Letters, Taylor & Francis Journals, vol. 5(5), pages 321-323.
  • Handle: RePEc:taf:apeclt:v:5:y:1998:i:5:p:321-323
    DOI: 10.1080/758524410
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    Cited by:

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    3. Brady, Gerard, 2013. "Network social capital and labour market outcomes Evidence from Ireland," MPRA Paper 47391, University Library of Munich, Germany.
    4. Hendrik Schmitz, 2008. "Do Optional Deductibles Reduce the Number of Doctor Visits? – Empirical Evidence with German Data," Ruhr Economic Papers 0076, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    5. Seuring, Till & Goryakin, Yevgeniy & Suhrcke, Marc, 2015. "The impact of diabetes on employment in Mexico," Economics & Human Biology, Elsevier, vol. 18(C), pages 85-100.
    6. Georgios P. Kouretas & Mark E. Wohar, 2012. "The dynamics of inflation: a study of a large number of countries," Applied Economics, Taylor & Francis Journals, vol. 44(16), pages 2001-2026, June.
    7. Hendrik Schmitz, 2012. "More health care utilization with more insurance coverage? Evidence from a latent class model with German data," Applied Economics, Taylor & Francis Journals, vol. 44(34), pages 4455-4468, December.
    8. Rowell, David & Connelly, Luke, 2010. "Labour market outcomes for people with a spinal cord injury," Economics & Human Biology, Elsevier, vol. 8(2), pages 223-232, July.
    9. repec:spr:intemj:v:13:y:2017:i:2:d:10.1007_s11365-016-0409-4 is not listed on IDEAS
    10. Habibov, Nazim & Cheung, Alex, 2016. "The impact of unofficial out-of-pocket payments on satisfaction with education in Post-Soviet countries," International Journal of Educational Development, Elsevier, vol. 49(C), pages 70-79.
    11. Matthias Firgo & Klaus Nowotny & Alexander Braun, 2017. "Informal, Formal, or Both? Assessing the Drivers of Home Care Utilization in Austria Using a Simultaneous Decision Framework," WIFO Working Papers 533, WIFO.
    12. Balia, Silvia & Jones, Andrew M., 2008. "Mortality, lifestyle and socio-economic status," Journal of Health Economics, Elsevier, vol. 27(1), pages 1-26, January.
    13. Fang, Xiangming & Tarui, Nori, 2015. "Child Maltreatment, Family Characteristics, and Educational Attainment: Evidence from Add Health Data," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205319, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    14. Lyonnet, Victor & Martin, Julien & Mejean, Isabelle, 2016. "Invoicing Currency and Financial Hedging," CEPR Discussion Papers 11700, C.E.P.R. Discussion Papers.
    15. Vicenzo Carrieri & Marcel Bilger, 2009. "Preventive care: underused even when free. A tale from Italy," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 2009.02, Institut d'Economie et Econométrie, Université de Genève.
    16. Edward Lorenz & Sophie Pommet, 2017. "Innovation, Credit Constraints and National Banking Systems: A Comparison of Developing Nations," GREDEG Working Papers 2017-16, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
    17. Nazim Habibov & Elvin Afandi & Alex Cheung, 2017. "What is the effect of university education on chances to be self-employed in transitional countries?: Instrumental variable analysis of cross-sectional sample of 29 nations," International Entrepreneurship and Management Journal, Springer, vol. 13(2), pages 487-500, June.
    18. Fukugawa, Nobuya, 2006. "Science parks in Japan and their value-added contributions to new technology-based firms," International Journal of Industrial Organization, Elsevier, vol. 24(2), pages 381-400, March.
    19. Gerard Brady, 2015. "Network Social Capital and Labour Market Outcomes: Evidence For Ireland," The Economic and Social Review, Economic and Social Studies, vol. 46(2), pages 163-195.
    20. repec:zbw:rwirep:0076 is not listed on IDEAS
    21. Schmitz, Hendrik, 2008. "Do Optional Deductibles Reduce the Number of Doctor Visits? – Empirical Evidence with German Data," Ruhr Economic Papers 76, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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