Palgrave Handbook of Econometrics: Applied Econometrics

512 Discrete Choice Modeling Interpretation of the components of this model is particularly complicated. Typically, interest wil ...

William Greene 513 11.4.4 Multivariate binary choice and the panel probit model In principle, the bivariate probit model can be ...

514 Discrete Choice Modeling 11.4.5 Application Riphahn, Wambach and Million (2003) studied the joint determination of two count ...

William Greene 515 11.5 Ordered choice In the preceding sections, the consumer is assumed to maximize utility over a pair of alt ...

516 Discrete Choice Modeling By the laws of probability: Prob(yi=j|xi,,zi)=Prob(Ui∗≤μj)−Prob(Ui∗≤μj− 1 ) =F(μj−x′iβ−z′iγ)−F(μj− ...

William Greene 517 Harris and Zhao (2007) suggested alternative parameterizations that circumvent these problems – a restricted ...

518 Discrete Choice Modeling The authors argued that, although the various calculus courses can be ordered discretely by the mat ...

William Greene 519 Tobias and Li extended their analysis to this case simply by “transforming” the dependent variable in Butler, ...

520 Discrete Choice Modeling The “j” specific constant, which is the same for all individuals, is absorbed inθi. Thus a fixed ef ...

William Greene 521 of a scale variable that reflects an underlying continuous variable, “health.” The frequencies and sample pro ...

522 Discrete Choice Modeling Table 11.5 Estimated ordered probit models for health satisfaction (1) Pooled (2) Fixed effects unc ...

William Greene 523 Table 11.6 Estimated marginal effects: pooled model HSAT Age Income Kids Education Married Working 0 0.0006 − ...

524 Discrete Choice Modeling that occurper unit of time. It can be shown that this discrete random variable has thePoisson proba ...

William Greene 525 11.6.1 Heterogeneity and the negative binomial model The Poisson model is typically only the departure point ...

526 Discrete Choice Modeling then the unconditional distribution is: f(yi|xi)= ∫∞ 0 f(yi,vi|xi)dvi= ∫∞ 0 f(yi|xi,vi)f(vi)dvi. Th ...

William Greene 527 other functional forms proposed for count data models, including the generalized Poisson, gamma, and Polya–Ae ...

528 Discrete Choice Modeling This model might apply for on-site counts of the use of certain facilities such as recreational sit ...

William Greene 529 whereλi = exp(x′iβ)andτ is a single new, free parameter to be estimated. (Researchers usually find that theτf ...

530 Discrete Choice Modeling whereγ=α/( 1 −ρ^2 )^1 /^2 andτ=ρ/( 1 −ρ^2 )^1 /^2. There is a minor extension of this model that mi ...

William Greene 531 11.6.3 Panel data models Hausman, Hall and Griliches (1984) (HHG) report the following conditional density fo ...