[Limdep Nlogit List] klein spady - binary choice

[William Greene]

Here's a reference that hits this nail on the head on the first page:
This is from Bruce Hansen at Wisconsin.

http://www.ssc.wisc.edu/~bhansen/718/NonParametrics7.pdf

Regards,
Bill Greene


----- Original Message -----
From: "Wiji Arulampalam" <Wiji.Arulampalam at warwick.ac.uk>
To: "Limdep and Nlogit Mailing List" <limdep at limdep.itls.usyd.edu.au>
Sent: Monday, November 9, 2009 10:56:57 AM GMT -05:00 US/Canada Eastern
Subject: [Limdep Nlogit List] klein spady - binary choice

I am trying to estimate a binary choice model using Klein-Spady semi
parametric estimator.  Limdep sets the intercept=0.  There is a user
written program in Stata which also sets the intercept=0 (stata program
does not ask for any other restriction).  However, when this technique
is applied, I find the authors setting the intercept=0 as well as
another slope coefficient=1.  I.e. an additional normalisation is
applied.
 
Could someone please tell me what Limdep is doing here?  Is there
another normalisation that is applied here?
 
Many thanks.
 
Yours,
Wiji
 
 
Wiji Arulampalam
Department of Economics
University of Warwick
Coventry CV4 7AL
UK
email: wiji.arulampalam at warwick.ac.uk
<mailto:wiji.arulampalam at warwick.ac.uk> 
Tel: +44 (0)24 76523471
Fax: +44 (0)24 76523032
Web: http://www.warwick.ac.uk/go/arulampalam
<http://www.warwick.ac.uk/go/arulampalam> 
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