Book contents
- Frontmatter
- 1 Qualitative response models
- 2 The identification problem in econometric models for duration data
- 3 The effects of time in economic experiments
- 4 Some recent developments on the distributions of single-equation estimators
- 5 Best uniform and modified Padé approximants to probability densities in econometrics
- 6 Identifiability and problems of model selection in econometrics
- 7 Causality, exogeneity, and inference
- 8 Generating mechanisms, models, and causality
- 9 Comparing alternative asymptotically equivalent tests
- 10 Conflict among testing procedures in a linear regression model with lagged dependent variables
- 11 Macroeconomic modeling based on econometric and simulation models for the Polish economy
1 - Qualitative response models
Published online by Cambridge University Press: 05 January 2013
- Frontmatter
- 1 Qualitative response models
- 2 The identification problem in econometric models for duration data
- 3 The effects of time in economic experiments
- 4 Some recent developments on the distributions of single-equation estimators
- 5 Best uniform and modified Padé approximants to probability densities in econometrics
- 6 Identifiability and problems of model selection in econometrics
- 7 Causality, exogeneity, and inference
- 8 Generating mechanisms, models, and causality
- 9 Comparing alternative asymptotically equivalent tests
- 10 Conflict among testing procedures in a linear regression model with lagged dependent variables
- 11 Macroeconomic modeling based on econometric and simulation models for the Polish economy
Summary
The problem
Econometrics is concerned with understanding and predicting the behaviors of economic agents. Some behavioral responses are structurally or observationally qualitative (categorical, discrete), rather than continuous. This is a survey of models and methods that have been developed for the analysis of qualitative responses.
Table 1.1 gives examples of economic qualitative responses. Empirical studies have concentrated on a constellation of problems in labor supply, such as occupational choice and employment status, and on travel behavior. The models that have been developed are strongly influenced by the specific features of these applications.
The examples in Table 1.1 are classified by economic agent: household, firm, or an interaction of agents. There are several other aspects of qualitative responses that may affect the choice of an appropriate method for analysis. First, the categorical response may be binomial (yes/no) or multinomial, and multinomial responses may be either naturally ordered or unordered. For example, the number of children is naturally ordered, whereas the brand of automobile purchased is not.
Second, the primary purpose of examining qualitative responses may be an intrinsic interest in explaining and forecasting the observed categorical behavior, or it may be the correction of biases induced by self-selection into a target population. For example, occupational choice is of direct interest because of its impact on labor supply, but it is also a potential source of bias in a study of labor hours supplied by a self-selected population of independent professional workers.
- Type
- Chapter
- Information
- Advances in Econometrics , pp. 1 - 38Publisher: Cambridge University PressPrint publication year: 1983
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