Publication Type

Journal Article

Version

publishedVersion

Publication Date

3-2008

Abstract

Building on some early works, Lewbel (2000) proposed estimators for binary and ordered discrete response models with endogenous regressors. These estimators have been extended for panel data and for truncated and censored models by later papers. The estimators are particularly innovative in that the latent linear regression functions are pulled out of the nonlinear limited dependent variable models, which are then treated as if they were the usual linear models. But understanding the estimators and their applications have been “hampered” by less-than-ideal expositions and assumptions. For this problem, this short note reviews the estimators and makes the following three points. First, the derivation and proper insight of the asymptotic variances are provided. Second, the inefficiency of the ordered discrete response version is pointed out and corrected. Third, assumptions in the panel data extension by Honoré and Lewbel (2002) are relaxed.

Keywords

semiparametrics, two-stage estimation, binary response, ordered discrete response, panel data

Discipline

Econometrics

Research Areas

Econometrics

Publication

Journal of Economic Theory and Econometrics

Volume

19

Issue

1

First Page

49

Last Page

58

ISSN

0022-0531

Publisher

Korean Econometric Society

Copyright Owner and License

Authors

Additional URL

http://es.re.kr/jetem/view.php?year=&month=&vol=&no=&article_idx=49

Included in

Econometrics Commons

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