Economics at your fingertips  

A simple alternative to the linear probability model for binary choice models with endogenous regressors

Christopher Baum (), Yingying Dong, Arthur Lewbel () and Tao Yang
Additional contact information
Tao Yang: Boston College

German Stata Users' Group Meetings 2012 from Stata Users Group

Abstract: Dong and Lewbel have developed the theory of simple estimators for binary choice models with endogenous or mismeasured regressors, depending on a “special regressor” as defined by Lewbel (Journal of Econometrics, 2000). These estimators can be used with limited, censored, continuous, or discrete endogenous regressors and have significant advantages over the linear probability model. These estimators are numerically straightforward to implement. We present and demonstrate an improved version of a Stata routine that provides both estimation and postestimation features, and we give a simple example where the linear probability model fails to estimate any useful quantity.

Date: 2012-06-04
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
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:

Access Statistics for this paper

More papers in German Stata Users' Group Meetings 2012 from Stata Users Group Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F Baum ().

Page updated 2020-05-29
Handle: RePEc:boc:dsug12:02