Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73131
Authors: 
Schwiebert, Jörg
Year of Publication: 
2012
Series/Report no.: 
Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät, Universität Hannover 506
Abstract: 
In this paper, we consider a detailed decomposition method for limited dependent variable models. That means, we propose a method to decompose the differential in the (limited dependent) outcome variable between two groups into the contributions of the explanatory variables. We provide a theoretical derivation of the detailed decomposition and show how this decomposition can be estimated consistently. In contrast to decomposition approaches already presented in the literature, our method leads to a unique decomposition and accounts for the nonlinearity of the underlying econometric model in a rather intuitive way. Our results can be applied to the most common limited dependent variable models such as probit, logit and tobit models.
Subjects: 
Decomposition methods
detailed decomposition
explained di erential
limited dependent variable models
probit
logit
tobit
JEL: 
C40
J31
J70
Document Type: 
Working Paper

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