[Limdep Nlogit List] Dynamic Probit Model

Liza Jabbour Liza.Jabbour at nottingham.ac.uk
Sat Jan 10 02:02:08 EST 2009


I want to estimate a Dynamic probit model using Limdep. My question is
related to the variables dit and fit. 
The set up of the model suggests that the time trend goes from 0 to T.
Variables at time 0 (the first period)  are used to estimate the initial
condition equation. In the set up, dit is equal to one in period 1 (not
zero, meaning the second period of the model) and dit is equal to one in
all other periods except period 1. 
I am not sure that this set up is correct. As mentioned in the text, the
slope vector is different in the initial period (period 0 and not 1).
Moreover, the example (with the create command) suggests that dit is
equal to one in the first period. 
So to sum up, my question is:
dit=1 if t= 0 (for the initial condition equation) and zero otherwise
fit=1 if t>0


dit=1 if t=1 (the second period) and zero otherwise
Fit=1 if t>1

Thank you very much

Best regards

Liza Jabbour 

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