Holm, Anders; Jæger, Mads Meier; Pedersen, Morten - Centre for Applied Microeconometrics (CAM), Økonomisk … - 2008
This paper proposes a new approach to dealing with unobserved heterogeneity in applied research using the binary logit model with cross-sectional data and short panels. Unobserved heterogeneity is particularly important in non-linear regression models such as the binary logit model because,...