Beschreibung:
This chapter discusses the certain salient themes of the limited dependent variable (LDV) literature. LDV's are usually explained in terms of some economic model or rationalizing scheme for which (1) their range is intrinsically a finite discrete set and any attempt to extend it to the real line not only does not lead to useful simplification but befouls any attempt to resolve the issues at hand and (2) even though their range may be the real line their behavior is conditioned on another process. Examples of the first type are the models of occupational choice, entry into labor force, entry into college upon high school graduation, the utilization of recreational facilities, the utilization of modes of transport, and childbearing. Examples of the latter are models of housing prices and wages in terms of the relevant characteristics of the housing unit or the individualcommonly referred to as hedonic price determination.