Journal article
A Control Function Approach to Estimating Dynamic Probit Models with Endogenous Regressorsa
Journal of econometric methods, v 2(1)
01 Jul 2013
Abstract
This paper proposes a parametric approach to estimating a dynamic binary response panel data model that allows for endogenous contemporaneous regressors. Such a model is of particular value for settings in which one wants to estimate the effects of an endogenous treatment on a binary outcome. In order to demonstrate the usefulness of the approach, we use it to examine the impact of rural-urban migration on the likelihood that households in rural China fall below the poverty line. In this application, it is shown that migration is important for reducing the likelihood that poor households remain in poverty and that non-poor households fall into poverty. Furthermore, it is demonstrated that failure to control for unobserved heterogeneity would lead the researcher to underestimate the impact of migrant labor markets on reducing the probability of falling into poverty.
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15 citations in Scopus
Details
- Title
- A Control Function Approach to Estimating Dynamic Probit Models with Endogenous Regressorsa
- Creators
- John Giles - Development Research Group, The World BankIrina Murtazashvili - Department of Economics and International Business, LeBow College of Business, Drexel University, 3141 Chestnut Street, Philadelphia, PA 19104, USA
- Publication Details
- Journal of econometric methods, v 2(1)
- Publisher
- De Gruyter
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Scopus ID
- 2-s2.0-85010636405
- Other Identifier
- 991014878374604721