Many applied settings in empirical economics require estimation of a large number of fixed effects, like teacher effects or location effects. In the context of binary response variables, previous studies have been limited to the linear probability model, citing perfect prediction and incidental...

I develop the flexible inverse logit (FIL) model, which is a structural inverse demand model which is able to describe the behavior of heterogeneous, utility-maximizing consumers choosing from a choice set of (possibly many) products that are differentiated in a way that is both observed and...

Regression models of a dependent variable that take on qualitative values 0 and 1 cannot be interpreted as conventional regression models. The fact that the dependent variable takes on two different values causes some problems in the model. These problems include the fact that the model’s...

This paper presents the main issues of financial microeconometrics. This field can be considered as a part of financial econometrics, while usually not exposed as such. Typical domains of the methodology of financial microeconometrics include research in empirical corporate finance and applied...