Ke, Peng-Hsuan; Tsay, Wen-Jen - Institute of Economics, Academia Sinica - 2010
It is found in Lee (2000) and Rabe-Hesketh et al. (2005) that the typical numerical-integral procedure suggested by Butler and Moffitt (1982) for the random effects probit model becomes biased when the correlation coefficient within each unit is relatively large. This could possibly explain why...