Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/103632
Authors: 
Oberhofer, Harald
Pfaffermayr, Michael
Year of Publication: 
2014
Citation: 
[Journal:] Econometrics [ISSN:] 2225-1146 [Publisher:] MDPI [Place:] Basel [Volume:] 2 [Year:] 2014 [Issue:] 3 [Pages:] 123-144
Abstract: 
This paper discusses two alternative two-part models for fractional response variables that are defined as ratios of integers. The first two-part model assumes a Binomial distribution and known group size. It nests the one-part fractional response model proposed by Papke and Wooldridge (1996) and, thus, allows one to apply Wald, LM and/or LR tests in order to discriminate between the two models. The second model extends the first one by allowing for overdispersion in the data. We demonstrate the usefulness of the proposed two-part models for data on the 401(k) pension plan participation rates used in Papke and Wooldridge (1996).
Subjects: 
fractional response models for ratios of integers
one-part versus two-part models
Wald test
LM test
LR test
JEL: 
C12
C15
C25
C52
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/3.0/
Document Type: 
Article
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