Kaicheng Chen, Robert S. Martin, Jeffrey M. Wooldridge
arXiv 29 Aug 2023 · Econometrics · 4 citations (OpenAlex)
arXiv:2308.15338 · PDF · DOI · OpenAlex · Extracted main text
We reassess the use of linear models to approximate response probabilities of binary outcomes, focusing on average partial effects (APE). We confirm that linear projection parameters coincide with APEs in certain scenarios. Through simulations, we identify other cases where OLS does or does not approximate APEs and find that having large fraction of fitted values in [0, 1] is neither necessary nor sufficient. We also show nonlinear least squares estimation of the ramp model is consistent and asymptotically normal and is equivalent to using OLS on an iteratively trimmed sample to reduce bias. Our findings offer practical guidance for empirical research.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Wooldridge, J. M (2010) Econometric analysis of cross section and panel data self | 1.000 | 9 | 3 | 100% |
| 2 | Horrace, W. C. and Oaxaca, R. L (2006) Results on the bias and inconsistency of ordinary least squares for the linear probability model | 0.928 | 4 | 3 | 100% |
| 3 | Stoker, T. M (1986) Consistent Estimation of Scaled Coefficients | 0.928 | 4 | 3 | 100% |
| 4 | Angrist, J. D. and Pischke, J.-S (2009) Mostly harmless econometrics: An empiricist's companion | 0.644 | 2 | 2 | 100% |
| 5 | Newey, W. K. and McFadden, D (1994) Large Sample Estimation Testing | 0.511 | 2 | 2 | 50% |
| 6 | Ruud, P. A (1983) Sufficient Conditions for the Consistency of Maximum Likelihood Estimation Despite Misspecification of Distribution in Multinomi… | 0.405 | 1 | 1 | 100% |
| 7 | Horowitz, J. L. and Savin, N (2001) Binary response models: Logits, probits and semiparametrics | 0.405 | 1 | 1 | 100% |
| 8 | Hunter, W. C. and Walker, M. B (1996) The cultural affinity hypothesis and mortgage lending decisions | 0.405 | 1 | 1 | 100% |
| 9 | van den Berg, G. J. and Siflinger, B. M (2022) The effects of a daycare reform on health in childhood–Evidence from Sweden | 0.405 | 1 | 1 | 100% |
| 10 | Wooldridge, J. M (2019) Introductory Econometrics: A Modern Approach self | 0.405 | 1 | 1 | 100% |
Showing the top 10 of 10 scored citations.