Indirect Estimation of Semiparametric Binary Choice Models

Research output: Contribution to journalArticle

Abstract

One of the most cited studies within the field of binary choice models is that of Klein and Spady (1993), in which the authors propose a semiparametric estimator for use when the distribution of the error term is unknown. However, although theoretically appealing, the estimator has been found to be difficult to implement, and therefore not very attractive from an applied point of view. The current study offers an indirect inference-based solution to this problem. The new estimator is not only simple with good small-sample properties, but also consistent and asymptotically normal.

Details

Authors
External organisations
  • Deakin University
  • Research Institute of Industrial Economics
Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Economics

Keywords

  • Indirect Inference, Binary Choice Models
Original languageEnglish
Pages (from-to)299-314
JournalOxford Bulletin of Economics and Statistics
Volume76
Issue number2
Publication statusPublished - 2014
Publication categoryResearch
Peer-reviewedYes
Externally publishedYes