Testing for complementarity when strategies are dichotomous
We show that it is not possible to extend Arora (1996) reduced form test for the existence of complementarity to evaluate the relationship between a couple of dichotomous strategies as it leads to an incoherent simultaneous discrete response model.
Year of publication: |
2010
|
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Authors: | Miravete, Eugenio J. ; Pernías, José C. |
Published in: |
Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 106.2010, 1, p. 28-31
|
Publisher: |
Elsevier |
Subject: | Dichotomous strategies Complementarity Incoherent models |
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