The binary-choice regression models such as probit and logit are used to describe the effect of explanatory variables on a binary response variable. Typically estimated by the maximum likelihood method, estimates are very sensitive to deviations from a model, such as heteroscedasticity and data...

The estimation of the holding periods of financial products has to be done in a dynamic process in which the size of the observation time interval influences the result. Small intervals will produce smaller average holding periods than bigger ones. The approach developed in this paper offers the...

We propose a new non-linear regression model for rating dependent variables. The rating scale model accounts for the upper and lower bounds of ratings. Parametric and semi-parametric estimation is discussed. An application investigates the relationship between stated health satisfaction and...