Discrete Choices with Panel Data
CEMFI Working Paper No. 0101
37 Pages Posted: 21 Feb 2001
Date Written: January 2001
Abstract
This paper reviews the existing approaches to deal with panel data binary choice models with individual effects. Their relative strengths and weaknesses are discussed. Much theoretical and empirical research is needed in this area, and the paper points to several aspects that deserve further investigation. In particular, I illustrate the usefulness of asymptotic arguments in providing both approximately unbiased moment conditions, and approximations to sampling distributions for panels of different sample sizes.
Keywords: Binary choice, panel data, fixed effects, modified likelihood, asymptotic corrections
JEL Classification: C23
Suggested Citation: Suggested Citation
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