Meyer, Bruce D.; Mittag, Nikolas - National Bureau of Economic Research (NBER) - 2014
While measurement error in the dependent variable does not lead to bias in some well-known cases, with a binary … dependent variable the bias can be pronounced. In binary choice, Hausman, Abrevaya and Scott-Morton (1998) show that the … asymptotic bias in parametric models allowing for correlation of the errors with both observables and unobservables. Second, we …