The Specification of Dynamic Discrete-Time Two-State Panel Data Models

Econometrics

DeanRobert Hyslop¹  Tue Gørgens² 

[1] Motu Economic and Public Policy Research, P.O. Box 24390, Wellington 6142, New Zealand;Research School of Economics, The Australian National University, Acton ACT 2601, Australia;

关键词: panel data;    transition data;    binary response;    duration analysis;    event history analysis;    dynamic models;    censored data;    initial conditions;    random effects;   

DOI  :  10.3390/econometrics7010001

来源: DOAJ

【 摘 要 】

This paper compares two approaches to analyzing longitudinal discrete-time binary outcomes. Dynamic binary response models focus on state occupancy and typically specify low-order Markovian state dependence. Multi-spell duration models focus on transitions between states and typically allow for state-specific duration dependence. We show that the former implicitly impose strong and testable restrictions on the transition probabilities. In a case study of poverty transitions, we show that these restrictions are severely rejected against the more flexible multi-spell duration models.

【 授权许可】

Unknown