Part IV - Advanced topics
Published online by Cambridge University Press: 05 June 2014
Summary
In this section, we introduce some relatively advanced econometric topics: panel estimation and logit/probit.
In the previous sections we have treated cross-sectional data and time-series data as separate but it is possible to combine these data sets, either by pooling or via panel estimation. We illustrate these techniques in the chapter on marriage and divorce.
Until now, we have focussed on linear estimation techniques. With ‘binary’ dependent variables, we estimate the probability of finding a particular characteristic. Linear estimation techniques may not work well when estimating probabilities. So, in the chapter on war and poverty, we introduce some non-linear techniques for the estimation of probabilities: logit and probit.
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- Information
- Running RegressionsA Practical Guide to Quantitative Research in Economics, Finance and Development Studies, pp. 247 - 248Publisher: Cambridge University PressPrint publication year: 2009