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) bias in β^. We add to this literature in two important ways. First, we focus on estimation of the fixed effects proper, as … these have become increasingly important in applied work. Second, we build on a bias-reduction approach originally developed …
Persistent link: https://www.econbiz.de/10011764680
This paper develops a simulation estimation algorithm that is particularly useful for estimating dynamic panel data models with unobserved endogenous state variables. The new approach can easily deal with the commonly encountered and widely discussed "initial conditions problem," as well as the...
Persistent link: https://www.econbiz.de/10003824296
This paper presents a convenient shortcut method for implementing the Heckman estimator of the dynamic random effects probit model using standard software. It then compares the three estimators proposed by Heckman, Orme and Wooldridge based on three alternative approximations, first in an...
Persistent link: https://www.econbiz.de/10003557347
bias. We extend this Mundlak equation further by replacing the time-varying explanatory variables by the corresponding …
Persistent link: https://www.econbiz.de/10011336953
This paper proposes a parametric approach to estimating a dynamic binary response panel data model that allows for endogenous contemporaneous regressors. Such a model is of particular value for settings in which one wants to estimate the effects of an endogenous treatment on a binary outcome. In...
Persistent link: https://www.econbiz.de/10009629773
A common approach to dealing with missing data is to estimate the model on the common subset of data, by necessity throwing away potentially useful data. We derive a new probit type estimator for models with missing covariate data where the dependent variable is binary. For the benchmark case of...
Persistent link: https://www.econbiz.de/10003829113
We develop a parametrization of the multinomial probit model that yields greater insight into the underlying decision-making process, by decomposing the error terms of the utilities into latent factors and noise. The latent factors are identified without a measurement system, and they can be...
Persistent link: https://www.econbiz.de/10011732373
This paper is a meta-analysis on the relationship between unemployment and health. Our meta-dataset is made up of 327 … bias is important, but only for those study results obtained through difference-in-differences or instrumental variables … estimators. The average effect of unemployment on health is negative, but small in terms of partial correlation coefficient. We …
Persistent link: https://www.econbiz.de/10013286559
effect having an opposite sign from the true effect. We present an expression for the asymptotic bias of both OLS and IV … estimators and discuss the conditions under which sign reversal may occur. We provide a method for eliminating this bias when …
Persistent link: https://www.econbiz.de/10011820585
-household peers' true BMI. This may bias studies that use BMI based on self-reported data as a regressor. Common methods to mitigate …
Persistent link: https://www.econbiz.de/10012612542