Latent class, or finite mixture, modelling has proved a very popular, and relatively easy, way of introducing much-needed heterogeneity into empirical models right across the social sciences. The technique involves (probabilistically) splitting the population into a finite number of (relatively...

We consider the estimation of the standard errors of individual-specific parameters calculated ex post from a non-linear random parameters model. Our key contribution lies in introducing a simple method of appropriately calculating these standard errors, which explicitly takes into account the...

The Navy’s promotion-retention process involves two successive decisions: The Navy decides whether an individual is selected for promotion, and then, conditional on the Navy’s decision, the sailor decides whether to reenlist or leave the Navy. Rates of promotion and retention...

The Navy’s promotion-retention process involves two successive decisions: The Navy decides whether an individual is selected for promotion, and then, conditional on the Navy’s decision, the sailor decides whether to reenlist or leave the Navy. Rates of promotion and retention...

The Navy’s promotion-retention process involves two successive decisions: The Navy decides whether an individual is selected for promotion, and then, conditional on the Navy’s decision, the sailor decides whether to reenlist or leave the Navy. Rates of promotion and retention...

We obtain an LM test for the random effects probit model. In the natural parameterization of the model the necessary derivatives are identically zero under the null hypothesis. After a reparameterization, the feasible LM test is based on generalized residuals.