Removing Specification Errors from the Usual Formulation of Binary Choice Models*

P. A. V. B. Swamy (), I-Lok Chang (), Jatinder S. Mehta (), William Greene, Stephen Hall and George Tavlas

No 16/11, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: We develop a procedure for removing four major specification errors from the usual formulation of binary choice models. The model that results from this procedure is different from the conventional probit and logit models. This difference arises as a direct consequence of our relaxation of the usual assumption that omitted regressors constituting the error term of a latent linear regression model do not introduce omitted regressor biases into the coefficients of the included regressors.

Date: 2016
New Economics Papers: this item is included in nep-dcm and nep-ecm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.le.ac.uk/economics/research/RePEc/lec/leecon/dp16-11.pdf (application/pdf)

Related works:
Journal Article: Removing Specification Errors from the Usual Formulation of Binary Choice Models (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lec:leecon:16/11

Ordering information: This working paper can be ordered from
https://www2.le.ac.u ... -1/discussion-papers

Access Statistics for this paper

More papers in Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester School of Business, University of Leicester, University Road. Leicester. LE1 7RH. UK Provider-Homepage: https://le.ac.uk/school-of-business. Contact information at EDIRC.
Bibliographic data for series maintained by Abbie Sleath ().