TY  - JOUR
AU  - Papke,Leslie E.
AU  - Wooldridge,Jeffrey M.
TI  - Econometric Methods for Fractional Response Variables with an Application to 401(k) Plan Participation Rates
JF  - National Bureau of Economic Research Technical Working Paper Series
VL  - No. 147
PY  - 1993
Y2  - November 1993
UR  - http://www.nber.org/papers/t0147
L1  - http://www.nber.org/papers/t0147.pdf
N1  - Author contact info:
Jeffrey Wooldridge
Department of Economics, Michigan State
University.
E-Mail: wooldri1@msu.edu
AB  - We offer simple quasi-likelihood methods for estimating regression models with a fractional dependent variable and for performing asymptotically valid inference.  Compared with log-odds type procedures, there is no difficulty in recovering the regression function for the fractional variable, and there is no need to use ad hoc transformations to handle data at the extreme values of zero and one.  We also offer some new, simple specification tests by nesting the logit or probit function in a more general functional form.  We apply these methods to a data set of employee participation rates in 401(k) pension plans.
ER  -