Econometrica: Jan, 2010, Volume 78, Issue 1

Binary Response Models for Panel Data: Identification and Information

https://doi.org/10.3982/ECTA8419
p. 159-168

Gary Chamberlain

This paper considers a panel data model for predicting a binary outcome. The conditional probability of a positive response is obtained by evaluating a given distribution function () at a linear combination of the predictor variables. One of the predictor variables is unobserved. It is a random effect that varies across individuals but is constant over time. The semiparametric aspect is that the conditional distribution of the random effect, given the predictor variables, is unrestricted.