Binary choice model with interactive effects

Sen Xue; Thomas Tao Yang; Qiankun Zhou

doi:10.1016/j.econmod.2017.08.002

Binary choice model with interactive effects

Sen Xue, Thomas Tao Yang^*, Qiankun Zhou

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

7 Citations (Scopus)

Abstract

This paper considers the estimation of binary choice model with interactive effects. We propose an estimator via combining the projection method (Mundlak, 1978) and the special regressor method (Lewbel, 2000a). The proposed estimator requires mild distribution assumptions on unobservables. The asymptotic property of this estimator is established. Our estimator performs well in Monte Carlo simulations. We apply this estimator to study migration intention of rural residents in China. The results suggest that numbers of co-habiting children and elderly are negatively correlated with migration intention.

Original language	English
Pages (from-to)	338-350
Number of pages	13
Journal	Economic Modelling
Volume	70
DOIs	https://doi.org/10.1016/j.econmod.2017.08.002
Publication status	Published - Apr 2018

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10.1016/j.econmod.2017.08.002

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title = "Binary choice model with interactive effects",

abstract = "This paper considers the estimation of binary choice model with interactive effects. We propose an estimator via combining the projection method (Mundlak, 1978) and the special regressor method (Lewbel, 2000a). The proposed estimator requires mild distribution assumptions on unobservables. The asymptotic property of this estimator is established. Our estimator performs well in Monte Carlo simulations. We apply this estimator to study migration intention of rural residents in China. The results suggest that numbers of co-habiting children and elderly are negatively correlated with migration intention.",

keywords = "Binary choice model, Interactive effects, Partition regression, Projection method, Special regressor",

author = "Sen Xue and Yang, {Thomas Tao} and Qiankun Zhou",

note = "Publisher Copyright: {\textcopyright} 2017 Elsevier B.V.",

year = "2018",

month = apr,

doi = "10.1016/j.econmod.2017.08.002",

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T1 - Binary choice model with interactive effects

AU - Xue, Sen

AU - Yang, Thomas Tao

AU - Zhou, Qiankun

PY - 2018/4

Y1 - 2018/4

N2 - This paper considers the estimation of binary choice model with interactive effects. We propose an estimator via combining the projection method (Mundlak, 1978) and the special regressor method (Lewbel, 2000a). The proposed estimator requires mild distribution assumptions on unobservables. The asymptotic property of this estimator is established. Our estimator performs well in Monte Carlo simulations. We apply this estimator to study migration intention of rural residents in China. The results suggest that numbers of co-habiting children and elderly are negatively correlated with migration intention.

AB - This paper considers the estimation of binary choice model with interactive effects. We propose an estimator via combining the projection method (Mundlak, 1978) and the special regressor method (Lewbel, 2000a). The proposed estimator requires mild distribution assumptions on unobservables. The asymptotic property of this estimator is established. Our estimator performs well in Monte Carlo simulations. We apply this estimator to study migration intention of rural residents in China. The results suggest that numbers of co-habiting children and elderly are negatively correlated with migration intention.

KW - Binary choice model

KW - Interactive effects

KW - Partition regression

KW - Projection method

KW - Special regressor

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U2 - 10.1016/j.econmod.2017.08.002

DO - 10.1016/j.econmod.2017.08.002

M3 - Article

SN - 0264-9993

VL - 70

SP - 338

EP - 350

JO - Economic Modelling

JF - Economic Modelling

ER -

Binary choice model with interactive effects

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