Maddala () - Limited Dependent & Qualitative Variables in Eco No MetricsEconometrics pp Cite as. 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 dealth 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. Unable to display preview.
Lecture 7: Regression With Qualitative Variables
Limited Dependent Variables
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Google Scholar. Email alerts Article activity alert. Hamerle, many of the economic variables encountered in practice are categorical those for which a suitable category can be found but where no actual measurement exists or truncated limitef that can be observed only in certain ranges. Despite the traditional emphasis on continuous variables in econometrics, A.
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Skip to search form Skip to main content. Maddala This book presents the econometric analysis of single-equation and simultaneous-equation models in which the jointly dependent variables can be continuous, categorical, or truncated. Despite the traditional emphasis on continuous variables in econometrics, many of the economic variables encountered in practice are categorical those for which a suitable category can be found but where no actual measurement exists or truncated those that can be observed only in certain ranges. View PDF. Save to Library. Create Alert. Share This Paper.
Introduction to Econometrics. Limited-Dependent and Qualitative Variables in Econometrics. Download preview PDF. Amemiya, T.
Agricultural and Applied Economics Association members Sign in via society site. Ann A. Download preview PDF. Advance article alerts.