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Semiparametric Binary Random Effects Models: Estimating Two Types of Drinking Behavior

Author

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  • Dong, Yingying

Abstract

This paper proposes a new estimator for cross section semiparametric regressions containing an unobserved binary random effect and applies it to alcohol consumption. The unobserved random effect (health-consciousness) explains a significant proportion of the otherwise unexplained variation in alcohol consumption. Higher education positively correlates with health-consciousness.

Suggested Citation

  • Dong, Yingying, 2010. "Semiparametric Binary Random Effects Models: Estimating Two Types of Drinking Behavior," MPRA Paper 25425, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:25425
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    File URL: https://mpra.ub.uni-muenchen.de/25425/1/MPRA_paper_25425.pdf
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    References listed on IDEAS

    as
    1. Cook, Philip J. & Moore, Michael J., 1993. "Drinking and schooling," Journal of Health Economics, Elsevier, vol. 12(4), pages 411-429, December.
    2. Xiaohong Chen & Oliver Linton & Ingrid Van Keilegom, 2003. "Estimation of Semiparametric Models when the Criterion Function Is Not Smooth," Econometrica, Econometric Society, vol. 71(5), pages 1591-1608, September.
    3. Dong, Yingying & Lewbel, Arthur, 2011. "Nonparametric identification of a binary random factor in cross section data," Journal of Econometrics, Elsevier, vol. 163(2), pages 163-171, August.
    4. Manning, Willard G. & Blumberg, Linda & Moulton, Lawrence H., 1995. "The demand for alcohol: The differential response to price," Journal of Health Economics, Elsevier, vol. 14(2), pages 123-148, June.
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    Cited by:

    1. Dong, Yingying & Lewbel, Arthur, 2011. "Nonparametric identification of a binary random factor in cross section data," Journal of Econometrics, Elsevier, vol. 163(2), pages 163-171, August.
    2. Mindaugas Sinkevicius, 2016. "Intention To Purchase Alcohol By Adults In The Country In Transition: The Effects Of Health Consciousness, Self-Efficacy And Religion Importance," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 7(2).

    More about this item

    Keywords

    Random Effects Model; Alcohol Consumption; Education;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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