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

Arellano, Manuel, Discrete Choices with Panel Data (January 2001). CEMFI Working Paper No. 0101, Available at SSRN: https://ssrn.com/abstract=261048 or http://dx.doi.org/10.2139/ssrn.261048

Manuel Arellano (Contact Author)

CEMFI ( email )

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