TY  - JOUR
AU  - Angrist,Joshua D.
TI  - Estimation of Limited-Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice
JF  - National Bureau of Economic Research Technical Working Paper Series
VL  - No. 248
PY  - 2000
Y2  - January 2000
UR  - http://www.nber.org/papers/t0248
L1  - http://www.nber.org/papers/t0248.pdf
N1  - Author contact info:
Joshua Angrist
Department of Economics
MIT, E52-353
50 Memorial Drive
Cambridge, MA  02142-1347
Tel: 617/253-8909
Fax: 617/253-1330
E-Mail: angrist@mit.edu
AB  - Applied economists have long struggled with the question of how to accommodate binary endogenous regressors in models with binary and non-negative outcomes.  I argue here that much of the difficulty with limited-dependent variables comes from a focus on structural parameters, such as index coefficients, instead of causal effects.  Once the object of estimation is taken to be the causal effect of treatment, a number of simple strategies is available.  These include conventional two-stage least squares, multiplicative models for conditional means, linear approximation of nonlinear causal models, models for distribution effects, and quantile regression with an endogenous binary regressor.  The estimation strategies discussed in the paper are illustrated by using multiple births to estimate the effect of childbearing on employment status and hours of work.
ER  -