This book presents the
econometric analysis of single-equation and simultaneous-equation models in which the
jointly dependent variables can be continuous, categorical, or truncated. Despite the
traditional emphasis on continuous variables in econometrics, many of the economic
variables encountered in practice are categorical (those for which a suitable category can
be found but where no actual measurement exists) or truncated (those that can be observed
only in certain ranges). Such variables are involved, for example, in models of
occupational choice, choice of tenure in housing, and choice of type of schooling. Models
with regulated prices and rationing, and models for program evaluation, also represent
areas of application for the techniques presented by the author.
Reviews
'The book does an
excellent job of surveying its chosen topics ... such a comprehensive treatment as this
book provides has previously been lacking. Thus the book fills an important gap in the
literature. It will no doubt be widely read and used. It should be useful both to
individuals interested in these topics at a theoretical level and those interested in
applications. In the latter regard, an excellent feature of the book is that it contains a
lot of empirical examples.' Journal of the American Statistical Association
'... this book represents
a significant contribution to the literature on limited dependent and qualitative
variables. It should serve as a major reference for researchers doing empirical work with
these models. It should also be useful to graduate students as well as econometric
theorists.' American Journal of Agricultural Economics
Contents
Preface;
1. Introduction;
2. Discrete regression
models;
3. Probabilistic-choice
models;
4. Discriminant analysis;
5. Multivariate qualitative
variables;
6. Censored and truncated
regression models;
7. Simultaneous-equations
models with truncated and censored variables;
8. Two-stage estimation
methods;
9. Models with
self-selectivity;
10. Disequilibrium models;
11. Some applications:
unions and wages;
Appendix: Some results on
truncated distributions
390 pages