In many economic studies, the dependent variable is discrete, indicating for example that a household purchased a car or that an individual is unemployed or that he or she joined the union. This dependent variable is usually represented by a binary choice variable \(y_{it}=1\) if the event happens and \( 0\) if it does not for individual i at time t.

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Limited Dependent Variables

  • Badi H. Baltagi

摘要

In many economic studies, the dependent variable is discrete, indicating for example that a household purchased a car or that an individual is unemployed or that he or she joined the union. This dependent variable is usually represented by a binary choice variable \(y_{it}=1\) if the event happens and \( 0\) if it does not for individual i at time t.