Economic Motivations for Limited Dependent and Qualitative Variable Models*

Estimating Contaminated Limited Dependent Variable Models

Smith for helpful comments and to Richard Blundell for kindly making his data available. In 1imi ted dependent variable models the estimators obtained by maximising the normal likelihood function are generally inconsistent when the assumption of normality ls falseo Arabmazar and Schmidt (1982) have shown that the bias trom non-normality can be substantial when the degree of censoring (or trunca...

Pseudo-R2 Measures for Some Common Limited Dependent Variable Models

A large number of different Pseudo-R measures for some common limited 2 dependent variable models are surveyed. Measures include those based solely on the maximized likelihoods with and without the restriction that slope coefficients are zero, those which require further calculations based on parameter estimates of the coefficients and variances and those that are based solely on whether the qu...

Economic Production Quantity Models with Shortage, Price and Stock-Dependent Demand for Deteriorating Items

This investigation presents an economic production quantity (EPQ) model for deteriorating items with stock-dependent demand and shortages. It is assumed that a constant fraction of the on-hand inventory deteriorates and demand rate depends upon the amount of the stock level. Expression for various optimal indices as well as cost analysis are provided. By taking numerical illustration, sensitivi...

ECON 5360 Class Notes Qualitative Dependent Variable Models

Identi cation of Limited Dependent Variable Models Using a Special Regressor With Limited Support

The special regressor method (Lewbel 2000) has been used to identify a variety of limited dependent variable models. Based on its early application to binary choice models, the method required the special regressor to have large (in many cases the entire real line) support, which constrained its usefulness for empirical work. This paper shows that for ordered choice and censored regression mode...