Arulampalam, Wiji (1998) A note on estimated coefficients in random effects probit models. Working Paper. University of Warwick, Department of Economics, Coventry.

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Abstract

This note points out to applied researchers what adjustments are needed to the coefficient estimates in a random effects probit model in order to make valid comparisons in terms of coefficient estimates and marginal effects across different specifications. These adjustments are necessary because of the normalisation that is used by standard software in order to facilitate easy estimation of the random effects probit model.

Item Type:	Working or Discussion Paper (Working Paper)
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Probits, Distribution (Probability theory), Estimation theory, Panel analysis
Series Name:	Warwick economic research papers
Publisher:	University of Warwick, Department of Economics
Place of Publication:	Coventry
Date:	October 1998
Number:	No.520
Number of Pages:	9
Status:	Not Peer Reviewed
Access rights to Published version:	Open Access
References:	Arulampalam, W. and Booth, A. L. (1998) - ‘Training and labour market flexibility: Is there a trade-off?’, forthcoming, British Journal of Industrial Relations, Dec. Booth, A.L., Garcia-Serrano, C. and Jenkins, S. P. (1996) - ‘New men and new women: Is there convergence in patterns of labour market transition?’, Institute of Labour Research, Discussion Paper 96/01, University of Essex. Greene, W. H. (1997) - Econometric Analysis, Prentice-Hall International, Inc. Greene, W. H. (1998) - LIMDEP, Version 7.0: User’s Manual, Bellport, NY: Econometric Software. Guilkey, D. K. and Murphy, J. L. (1993) - ‘Estimation and testing in the random effects probit model’, Journal of Econometrics, 59, 301-317. Heckman, J. J. (1981) - ‘Statistical models for discrete panel data’, in Structural Analysis of Discrete Data with Econometric Applications, ed. C. F. Manski and D. McFadden, 114-178, Cambridge: MIT Press. Maddala, G. S. (1987) - ‘Limited dependent variable models using panel data’, Journal of Human Resources, XX11,3, 307-337. Robinson, P. M. (1982) - ‘On the asymptotic properties of estimators of models containing limited dependent variables’, Econometrica, 50(1), 27-42. STATA (1997) - Statistical Software, Release 5, Stata Corporation.
URI:	http://wrap.warwick.ac.uk/id/eprint/1657

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