[Limdep Nlogit List] klein spady - binary choice

[Arulampalam, Wiji]

Thanks very much Bill.
I will use limdep for the estimations. 
Best
wiji

Professor Wiji Arulampalam
Department of Economics
University of Warwick
Coventry CV4 7AL
UK
email: wiji.arulampalam at warwick.ac.uk
Tel: +44 (0)24 76523471
Fax: +44 (0)24 76523032
Web: http://www.warwick.ac.uk/go/arulampalam

-----Original Message-----
From: limdep-bounces at limdep.itls.usyd.edu.au
[mailto:limdep-bounces at limdep.itls.usyd.edu.au] On Behalf Of William
Greene
Sent: 09 November 2009 18:57
To: Limdep and Nlogit Mailing List
Subject: Re: [Limdep Nlogit List] klein spady - binary choice

Wiji. 
It does raise a question, but no, it is not optional in LIMDEP.
The last coefficient is restricted to equal 1.0. 
/Bill

----- 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 1:45:50 PM GMT -05:00 US/Canada Eastern
Subject: Re: [Limdep Nlogit List] klein spady - binary choice

Bill,
The stata routine is putting the onus on the user to set a coefficient=1
without making it mandatory. Isn't this what Limdep is  doing too?
It would be useful if the programs issued a warning if a coefficient was
not normalised.
Cheers
wiji

Wiji Arulampalam
Department of Economics
University of Warwick
Coventry CV4 7AL
UK
email: wiji.arulampalam at warwick.ac.uk
Tel: +44 (0)24 76523471
Fax: +44 (0)24 76523032
Web: http://www.warwick.ac.uk/go/arulampalam

-----Original Message-----
From: limdep-bounces at limdep.itls.usyd.edu.au
[mailto:limdep-bounces at limdep.itls.usyd.edu.au] On Behalf Of William
Greene
Sent: 09 November 2009 16:23
To: Limdep and Nlogit Mailing List
Subject: Re: [Limdep Nlogit List] klein spady - binary choice

Wiji.
I guess at this point, the relevant question is what is the Stata
routine doing?  Evidently it is not estimating this model.
Cheers,
Bill


----- 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 11:19:43 AM GMT -05:00 US/Canada Eastern
Subject: Re: [Limdep Nlogit List] klein spady - binary choice

Thanks very much once again. I will take a look at this.
Best
wiji

Wiji Arulampalam
Department of Economics
University of Warwick
Coventry CV4 7AL
UK
email: wiji.arulampalam at warwick.ac.uk
Tel: +44 (0)24 76523471
Fax: +44 (0)24 76523032
Web: http://www.warwick.ac.uk/go/arulampalam

-----Original Message-----
From: limdep-bounces at limdep.itls.usyd.edu.au
[mailto:limdep-bounces at limdep.itls.usyd.edu.au] On Behalf Of William
Greene
Sent: 09 November 2009 16:17
To: Limdep and Nlogit Mailing List
Subject: Re: [Limdep Nlogit List] klein spady - binary choice

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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