EconPapers    
Economics at your fingertips  
 

Limited Dependent Variables

Badi Baltagi

Chapter Chapter 13 in Econometrics, 2011, pp 333-371 from Springer

Abstract: Abstract In labor economics, one is faced with explaining the decision to participate in the labor force, the decision to join a union, or the decision to migrate from one region to the other. In finance, a consumer defaults on a loan or a credit card debt, or purchases a stock or an asset like a house or a car. In these examples, the dependent variable is usually a dummy variable with values 1 if the worker participates (or consumer defaults on a loan) and 0 if he or she does not participate (or default). We dealt with dummy variables as explanatory variables on the right hand side of the regression, but what additional problems arise when this dummy variable appears on the left hand side of the equation? As we have done in previous chapters, we first study its effects on the usual least squares estimator, and then consider alternative estimators that are more appropriate for models of this nature.

Keywords: Probit Model; Problem Drinking; Tobit Model; Pension Plan; Reservation Wage (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Chapter: Limited Dependent Variables (2015)
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:spr:sptchp:978-3-642-20059-5_13

Ordering information: This item can be ordered from
http://www.springer.com/9783642200595

DOI: 10.1007/978-3-642-20059-5_13

Access Statistics for this chapter

More chapters in Springer Texts in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-04-01
Handle: RePEc:spr:sptchp:978-3-642-20059-5_13