Mathematics
4 years ago

New Estimators Tackle Heteroscedasticity in Binary Choice Models for Better Results!

Econometric Society World Congress 2000 Contributed Papers
Semiparametric Estimation of Heteroscedastic Binary Sample Selection Model
Song Nian Chen

Paper Summary

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Binary choice sample selection models in economics often face issues with heteroscedasticity. New estimators have been developed to address this problem, which are robust to nonnormality and general heteroscedasticity. These estimators are proven to be accurate and reliable, even when the form of heteroscedasticity is unknown. The approach used in this study can also be applied to other important models in economics.