Type | Journal Article - The Econometrics Journal |
Title | Consistent estimation of binary-choice panel data models with heterogeneous linear trends |
Author(s) | |
Volume | 9 |
Issue | 2 |
Publication (Day/Month/Year) | 2006 |
Page numbers | 177-195 |
URL | https://ideas.repec.org/a/ect/emjrnl/v9y2006i2p177-195.html |
Abstract | Summary This paper presents an extension of fixed effects binary choice models for panel data, to the case of heterogeneous linear trends. Two estimators are proposed: a Logit estimator based on double conditioning and a semiparametric, smoothed maximum score estimator based on double differences. We investigate small-sample properties of these estimators with a Monte Carlo simulation experiment, and compare their statistical properties with standard fixed effects procedures. An empirical application to land renting decisions of Russian households between 1996 and 2002 is proposed. |