New method predicts economic behavior without specifying disturbance probability distributions.
Pseudo maximum likelihood methods were used to analyze Poisson models with and without specification errors. The researchers found that consistent and accurate estimators can be obtained without needing to know the exact probability distribution of the disturbances. They also introduced quasi generalized PML estimators that outperform all other PML estimators. Additionally, the study discussed bivariate and panel data Poisson models commonly used in analyzing economic behavior involving discrete variables.
